Ryman extends waiver of financial covenants to April 2022

By Cady Vishniac

Detroit, Dec. 22 – Ryman Hospitality Properties Inc. has extended the expiration date of a temporary waiver of its credit agreement’s financial covenants to April 1, 2022 from March 31, 2021, according to a press release.

As previously reported, the company completed the amendment waiving all of its facilities’ financial covenants in April.

The amendment governs the company’s $700 million revolving credit facility, $300 million term loan A facility and the original $500 million term loan B facility, of which about $385 million is outstanding, which was obtained from a consortium of banks led by Wells Fargo Bank, NA as administrative agent.

The amendment may be terminated early by the company at its option and confirms the availability of the remaining $300 million of undrawn amounts under the revolver.

Effective April 1, 2021, during the extended waiver period, the amendment provides for increased interest on outstanding amounts due under the revolving credit facility and the term loan A facility, additional restrictions on debt, investments, dividends, share repurchases and certain capital expenditures, and a minimum liquidity requirement.

In addition, all borrowings under the revolver made during the waiver period may only be used for payment of operating expenses, debt service, and permitted capital expenditures and investments.

“The temporary waiver of financial covenants provides the additional financial and operational flexibility that is critical during this period of uncertainty. We appreciate the continued support from our long-tenured bank group during this unprecedented time, as well as the recognition of the value of our one-of-a-kind portfolio of hotel assets. Together with our unrestricted cash on hand and the remaining availability under our revolving credit facility, we believe we will have ample liquidity to weather this extended period of disruption,” Ryman’s chairman and chief executive officer Colin Reed stated.

Nashville-based Ryman Hospitality specializes in group-oriented, destination hotel assets in urban and resort markets.

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