Ryman Hospitality driving by with $300 million five-year notes; initial talk 7½%-7¾%

By Paul A. Harris

Portland, Ore., June 7 – Ryman Hospitality Properties, Inc. plans to price a $300 million offering of five-year senior notes (B1/B+) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial talk has the deal coming to yield 7½% to 7¾%, according to a sellside source, who added that the deal, which has commanded a pair of large orders, could upsize by $50 million to $100 million.

The Rule 144A and Regulation S for life notes come with two years of call protection.

J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc. and Scotia Capital (USA) Inc. are the bookrunners.

Proceeds plus proceeds from the sale of 3.85 million shares of common stock at $93.25 per share, which priced on Wednesday, together with cash on hand, will be used to fund the approximately $800 million acquisition of JW Marriott San Antonio Hill Country Resort & Spa located in San Antonio, from BREIT JWM San Antonio LP and BREIT JWM San Antonio TRS LLC.

The proceeds will be escrowed pending the closing of the acquisition, and the notes will be subject to a mandatory par call if the acquisition fails to close.

The issuing entities will be RHP Hotel Properties, LP and RHP Finance Corp., subsidiaries of Ryman Hospitality Properties, a Nashville-based lodging and hospitality real estate investment trust.

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