Gaylord likely to tender for 6¾% notes due 2014 after Marriott sale

By Susanna Moon

Chicago, Aug. 7 - Gaylord Entertainment Co. said it expects to tender for some of its $152.2 million outstanding 6¾% senior notes due 2014 after the sale of its Gaylord Hotels properties to Marriott International, Inc. for $210 million.

Under the terms of the notes, the company must apply the proceeds of the Marriott sale as directed by the asset sale provisions, according to a 10-Q filing with the Securities and Exchange Commission.

Because the company expects not to use the proceeds as required under the note terms, it will likely have to tender for some of the notes within 360 days of the completion of the Marriott sale.

Gaylord said that if it is unable to refinance the 6¾% notes in the debt capital markets, it will likely wait to redeem them until Nov. 15, when the notes are redeemable at par, using operational cash flow or borrowings under its revolving credit line.

The company said that given its operating performance and availability under its revolving credit line, tendering for some or redeeming all of the notes will not hurt its long-term liquidity.

Gaylord is a Nashville hospitality and entertainment company.

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