Gaylord Entertainment $360 million 3.75% notes convertible to Sept. 30

By Tali David

Minneapolis, Aug. 21 - Gaylord Entertainment Co. announced that its $360 million of 3.75% convertible senior notes due Oct. 1, 2014 are now convertible at the option of holders and will remain so through Sept. 30, according to a press release.

The notes became convertible because of an anticipated special dividend that will be payable if the company declares a dividend and completes its previously announced intention to reorganize and elect to be treated as a real estate investment trust for federal income tax purposes. There is no assurance that the dividend will in fact be declared, the company said.

Gaylord's stock closed at $40.41 per share on Aug. 20.

The note indenture provides that the notes are convertible in any fiscal quarter if the last reported sale price of the company's common stock for at least 20 trading days during the last 30 consecutive trading-day period of the immediately preceding fiscal quarter was greater than 120% of the conversion price of $27.75 per share.

If that trading price condition is met for the fiscal quarter ending Sept. 30, the notes will also be convertible during the fiscal quarter beginning Oct. 1 and ending on Dec. 31.

Gaylord is a Nashville hospitality and entertainment company.

© 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.