By Paul A. Harris
Portland, Ore., March 21 – Ryman Hospitality Properties, Inc. priced an upsized $1 billion issue of eight-year senior notes (B1/BB-/BB-) at par to yield 6½% in a Thursday drive-by, according to market sources.
The issue size increased from $800 million.
J.P. Morgan Securities LLC was the lead.
Prior to launching the upsized issue at 6½% – in the middle of the 6 3/8% to 6 5/8% price talk – the deal was heard to be playing to around $2.7 billion of demand, a trader said.
Initial guidance was 6 5/8% to 6¾%.
The Nashville-based lodging and hospitality real estate investment trust will issue the notes via subsidiaries RHP Hotel Properties, LP and RHP Finance Corp.
Proceeds plus cash on hand will be used to prepay debt of Gaylord Rockies Resort & Convention Center under the second amended and restated loan agreement dated July 2, 2019, with Wells Fargo Bank, NA, as administrative agent. The incremental proceeds resulting from the $200 million upsizing of the deal will be applied to the company’s outstanding term loan B.
| Issuers: | RHP Hotel Properties, LP and RHP Finance Corp.
|
| Amount: | $1 billion, increased from $800 million
|
| Issue: | Senior notes
|
| Maturity: | April 1, 2032
|
| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 223 bps
|
| First call: | April 1, 2027 at 103.25
|
| Trade date: | March 21
|
| Settlement date: | March 28
|
| Ratings: | Moody’s: B1
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6 3/8% to 6 5/8%
|
| Marketing: | Drive-by
|
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