Ryman Hospitality Properties, Inc. Announces Completion of Gaylord Rockies Resort & Convention Center Refinancing
July 02 2019 - 05:14PM
Ryman Hospitality Properties, Inc. (NYSE: RHP), a lodging real
estate investment trust ("REIT") specializing in group-oriented,
destination hotel assets in urban and resort markets, today
reported that the joint venture that owns Gaylord Rockies Resort
& Convention Center has successfully completed the refinancing
of its prior construction loan and mezzanine loan, which were
scheduled to mature in December 2019.
The new loan consists of an $800 million term loan and an
additional $80 million of borrowing capacity should the joint
venture decide to pursue a future expansion. The new loan matures
in July 2023 with three, one-year extension options and bears
interest at LIBOR plus 2.50%. The loan is secured by a deed of
trust lien on the Gaylord Rockies real estate and related assets.
In addition, Ryman and an affiliate of the other principal owner
entered into limited guaranties of a 10% portion of the principal
debt, together with interest and operating expenses. Other than (i)
those limited guaranties (which are to be released once the project
achieves a certain debt service coverage threshold), (ii) a
completion guaranty in the event the expansion is pursued and (iii)
customary carve-outs, the loan is entirely non-recourse to Ryman.
Wells Fargo is the agent and arranger for the loan. Simultaneously
with the loan closing, the joint venture entered into an interest
rate swap to fix the LIBOR portion of the interest rate at 1.65%
for the first 3 years of the loan. The Gaylord Rockies joint
venture will use the loan proceeds to repay the construction and
mezzanine loans and, after repayment of expenses, will distribute
excess proceeds to its owners.
Ryman Hospitality Properties, which owns 61.2%
of the Gaylord Rockies joint venture, expects to receive a
distribution of approximately $153 million, which it will use to
repay a portion of the outstanding indebtedness under the Ryman
revolving credit facility.
Colin Reed, chairman and chief executive officer of Ryman
Hospitality Properties, said, “We are pleased to announce this
refinancing, which creates a new financing structure that better
reflects our long-term position in this venture and frees up
additional borrowing capacity under our revolving credit facility.”
About Ryman Hospitality Properties, Inc. Ryman
Hospitality Properties, Inc. (NYSE: RHP) is a REIT for federal
income tax purposes, specializing in group-oriented, destination
hotel assets in urban and resort markets. The Company’s owned
assets include a network of four upscale, meetings-focused resorts
totaling 8,114 rooms that are managed by lodging operator Marriott
International, Inc. under the Gaylord Hotels brand. The Company is
a joint venture owner of the 1,501-room Gaylord Rockies Resort
& Convention Center, which is also managed by Marriott
International, Inc. under the Gaylord Hotels brand. Other owned
assets managed by Marriott International, Inc. include Gaylord
Springs Golf Links, the Wildhorse Saloon, the General Jackson
Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent
to Gaylord Opryland and AC Hotel Washington, DC at National Harbor,
a 192-room hotel near Gaylord National. The Company also owns and
operates media and entertainment assets, including the Grand Ole
Opry (opry.com), the legendary weekly showcase of country music’s
finest performers for over 90 years; the Ryman Auditorium, the
storied former home of the Grand Ole Opry located in downtown
Nashville; 650 AM WSM, the Opry’s radio home; and Ole Red, a
country lifestyle and entertainment brand. For additional
information about Ryman Hospitality Properties, visit
www.rymanhp.com. Cautionary Note Regarding Forward-Looking
Statements This press release contains statements as to
the Company’s beliefs and expectations of the outcome of future
events that are forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. You can identify
these statements by the fact that they do not relate strictly to
historical or current facts. Examples of these statements include,
but are not limited to, statements regarding future performance.
Forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include the risks and uncertainties
associated with economic conditions affecting the hospitality
business generally, the geographic concentration of the Company’s
hotel properties, business levels at the Company’s hotels, the
Company’s ability to remain qualified as a REIT for federal income
tax purposes, the Company’s ability to execute its strategic goals
as a REIT, the Company’s ability to generate cash flows to support
dividends, future board determinations regarding the timing and
amount of dividends and changes to the dividend policy, which could
be made at any time, the determination of Adjusted FFO available to
common shareholders and REIT taxable income, and the Company’s
ability to borrow funds pursuant to its credit agreement. Other
factors that could cause operating and financial results to differ
are described in the filings made from time to time by the Company
with the U.S. Securities and Exchange Commission (SEC) and include
the risk factors and other risks and uncertainties described in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 and its Quarterly Reports on Form 10-Q and
subsequent filings. The Company does not undertake any obligation
to release publicly any revisions to forward-looking statements
made by it to reflect events or circumstances occurring after the
date hereof or the occurrence of unanticipated events.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President & Chief Financial Officer |
Shannon Sullivan, Vice President Corporate and Brand
Communications |
Ryman Hospitality Properties, Inc. |
Ryman Hospitality Properties, Inc. |
(615) 316-6588 |
(615) 316-6725 |
mfioravanti@rymanhp.com |
ssullivan@rymanhp.com |
~or~ |
~or~ |
Todd Siefert, Vice President Corporate Finance & Treasurer |
Robert Winters |
Ryman Hospitality Properties, Inc. |
Alpha IR Group |
(615) 316-6344 |
(929) 266-6315 |
tsiefert@rymanhp.com |
robert.winters@alpha-ir.com |
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