S&P applies BB to Ryman term loans

S&P said it assigned its BB issue-level and 1 recovery ratings to Ryman Hospitality Properties Inc.'s proposed $200 million term loan A due in 2022 and proposed $400 million term loan B due in 2024 (both issued by subsidiary RHP Hotel Properties LP).

The 1 recovery rating reflects an expectation for very high (90%-100%; rounded estimate: 95%) recovery for lenders in the event of a payment default.

The company also plans to extend the maturity of its existing $700 million revolving credit facility to 2021 from 2019. The BB issue-level and 1 recovery ratings on the revolver are unchanged.

The BB issue-level and 1 recovery ratings on the company's $350 million of senior unsecured notes due in 2021 and its $400 million of senior unsecured notes due in 2023 are also unchanged.

Ryman intends to use the proceeds from the proposed term loan A and term loan B to pay down a portion of the borrowings under its revolving credit facility, to refinance its existing term loan B and to pay fees and expenses.

The company’s B+ corporate credit rating and stable outlook are unchanged.

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