Ryman extends revolver to 2019, cuts pricing to Libor plus 160 bps

By Susanna Moon

Chicago, June 9 – Ryman Hospitality Properties, Inc. extended its $700 million revolving credit facility to June 2019, which has about $360.5 million of outstanding borrowings.

The company amended its credit agreement last Friday with Wells Fargo Bank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest is initially Libor plus 160 basis points with a spread of Libor plus 160 bps to 240 bps based on leverage. Pricing was cut by about 15 bps to 35 bps, according to a company press release.

The unused fee ranges from 20 bps to 30 bps.

The amendment also provides for two additional six-month extension options.

The facility continues to be guaranteed by the company, each of its four wholly owned subsidiaries that own the Gaylord Hotels-branded properties, and some other subsidiaries.

The revolving line of credit had been set to mature in August 2017.

The company also amended covenants under the facility, which also includes a $400 million senior secured term loan due Jan. 15, 2021.

The amendment reduced the consolidated tangible net worth covenant requirement to $175 million plus 75% of any equity issuances and reduced the minimum fixed-charge coverage ratio to 1.5 times.

With the extension and recently completed private placement of $400 million principal amount of 5% senior notes due 2023, the company and its subsidiaries’ debt has no maturity date prior to 2019, the press release noted.

“This extension of our revolving line of credit coupled with the recent completion of our senior unsecured notes offering further strengthens our balance sheet,” Colin V. Reed, chairman and chief executive officer of Ryman Hospitality Properties, said in the press release.

“These two transactions will not only enhance our flexibility as we look toward strategic growth opportunities moving forward, but also bring our floating-rate debt exposure to more balanced levels.”

The Nashville-based real estate investment trust specializes in group-oriented, destination hotel assets in urban and resort markets.

© 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.