Ryman Hospitality gets $700 million revolver, $300 million term loan

By Angela McDaniels

Tacoma, Wash., April 23 - Ryman Hospitality Properties, Inc. and subsidiary RHP Hotel Properties, LP refinanced their $925 million credit facility due August 2015 with a new $1 billion credit facility due April 18, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The increased and extended $1 billion credit facility is comprised of a $700 million senior secured revolving credit line and a $300 million senior secured term loan.

The previous credit facility was comprised of a $400 million term loan and a $525 million revolving credit line.

RHP Hotel Properties is the borrower. The credit facility is guaranteed by Ryman, each of its four wholly owned subsidiaries that own the Gaylord Hotels-branded properties and some other subsidiaries.

The facility has a $500 million accordion feature.

The new revolver includes a $75 million letter-of-credit sublimit and a $50 million sublimit for swingline loans.

The initial interest rate is Libor plus 175 basis points. The margin ranges from 175 bps to 275 bps based on the company's leverage.

The commitment fee on the revolver is 30 bps if usage is 50% or more and 40 bps is usage is less than 50%.

The new facility closed on April 18. The company drew down $154 million of the revolver.

Wells Fargo Bank NA is the administrative agent. Wells Fargo Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and U.S. Bank, NA acted as lead arrangers and bookrunners.

The credit facility is secured by a first mortgage lien on the real property of each of the company's Gaylord Hotels properties; pledges of equity interests in the subsidiaries of the company that own the Gaylord Hotels properties; pledges of equity interests in RHP Hotel Properties, the guarantors and certain other subsidiaries of the company; and the personal property of the company, RHP Hotel Properties and the guarantors.

Advances are subject to a 55% borrowing base, based on the appraisal value of the Gaylord Hotels properties (reduced to 50% in the event a hotel property is sold).

Under the credit facility's covenants, the company must maintain

• A consolidated funded debt to total asset value ratio as of the end of each quarter of not more than 0.65 to 1.0;

• A consolidated tangible net worth of not less than $660 million plus 75% of the proceeds received by the company or any of its subsidiaries in connection with any equity issuance;

• A consolidated fixed charge coverage ratio of not less than 1.75 to 1.00; and

• An implied debt service coverage ratio of not less than 1.60 to 1.00.

Ryman is a hospitality and entertainment company based in Nashville.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.