Moody’s rates Ryman facility Ba3

Moody's Investors Service said it assigned a Ba3 rating to RHP Hotel Properties, LP's amended $700 million senior secured revolving credit facility and proposed $200 million senior secured term loan A and $400 million senior secured term loan B, currently being marketed.

The credit facility is guaranteed by RHP Hotel’s parent, Ryman Hospitality Properties, Inc.

The agency also affirmed the lodging REIT's existing senior secured revolving credit facility, senior secured term loan B and corporate family rating at Ba3 and its senior unsecured rating at B1.

The outlook remains stable.

Moody’s said the actions follow the announcement that Ryman plans to raise $200 million from a new secured term loan A due 2022 and $400 million from a new secured term loan B due 2024.

“The company intends to use the net proceeds from the two pari passu loans to repay its existing $390 million secured term loan B and to pay down a portion of its outstanding revolver balance. Ryman also plans to amend its existing $700 million secured revolver that matures in 2019 with a facility of equal size that matures in 2021,” Moody’s said in a news release.

The transactions will be completed on a leverage neutral basis, improve liquidity and extend Ryman's debt maturity schedule. Pro forma for the proposed refinancing, Ryman will not have any debt maturities until 2021, the agency added.

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