S&P rates Ryman notes BB

Standard & Poor’s said it assigned a BB rating with a recovery rating of 1 to Ryman Hospitality Properties Inc.’s proposed $400 million senior unsecured notes due 2023.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The notes are being co-issued by Ryman’s wholly owned subsidiaries, RHP Hotel Properties LP and RHP Finance Corp.

Parent company, Ryman Hospitality Properties Inc., and its operating subsidiaries guarantee the notes.

The proceeds will be used from the proposed senior unsecured notes to fully repay its $300 million senior secured term loan A, repay a portion of outstanding revolver balances and for transaction fees and expenses.

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

The BB ratings and 1 recovery ratings on Ryman’s $700 million senior secured revolving credit facility due 2017, $400 million senior secured term loan B due 2021 and $350 senior unsecured notes due 2021 also are unchanged.

The transaction is leverage neutral, S&P said.

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