By Paul A. Harris
Portland, Ore., June 7 – Ryman Hospitality Properties, Inc. priced an upsized $400 million issue of five-year senior notes (B1/B+) at par to yield 7¼% in a Wednesday drive-by, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of the 7¼% to 7½% yield talk. Initial talk was 7½% to 7¾%.
The deal played to $2 billion of orders, according to a sellside source, who added that the upsize was contingent on printing the deal with a 7¼% coupon at par.
J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc. and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds plus proceeds from the sale of 3.85 million shares of common stock at $93.25 per share, which priced on Wednesday, together with cash on hand, will be used to fund the approximately $800 million acquisition of JW Marriott San Antonio Hill Country Resort & Spa located in San Antonio, from BREIT JWM San Antonio LP and BREIT JWM San Antonio TRS LLC.
The incremental proceeds resulting from the $100 million upsizing of the deal will be used to reduce the cash portion of the acquisition.
The proceeds will be escrowed pending the closing of the acquisition, and the notes will be subject to a mandatory par call if the acquisition fails to close.
The issuing entities, RHP Hotel Properties, LP and RHP Finance Corp., are subsidiaries of Ryman Hospitality Properties, a Nashville-based lodging and hospitality real estate investment trust.
| Issuers: | RHP Hotel Properties, LP and RHP Finance Corp.
|
| Amount: | $400 million, increased from $300 million
|
| Issue: | Senior notes
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| Maturity: | July 15, 2028
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc. and Scotia Capital (USA) Inc.
|
| Coupon: | 7¼%
|
| Price: | Par
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| Yield: | 7¼%
|
| Spread: | 332 bps
|
| First call: | July 15, 2025 at 103.625
|
| Trade date: | June 7
|
| Settlement date: | June 22
|
| Ratings: | Moody’s: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Drive-by
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