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Ryman announces $800 million term loan for Gaylord Rockies venture
By Wendy Van Sickle
Columbus, Ohio, July 2 – Ryman Hospitality Properties Inc. (RHP Hotel Properties LP) said the joint venture that owns Gaylord Rockies Resort & Convention Center refinanced its construction and mezzanine loans, which were scheduled to mature in December, with a new $800 million term loan, according to a news release.
The venture also has an option to add $80 million of capacity, should it decide to pursue a future expansion.
Wells Fargo is the agent and arranger for the new loan.
The new loan matures in July 2023 with three one-year extension options and bears interest at Libor plus 250 basis points.
The loan is secured by a deed of trust lien on the Gaylord Rockies real estate and related assets.
In addition, Ryman and an affiliate of the other principal owner entered into limited guaranties of a 10% portion of the principal debt, together with interest and operating expenses.
Simultaneously with the loan closing, the joint venture entered into an interest rate swap to fix the Libor portion of the interest rate at 1.65% for the first three years.
The Gaylord Rockies will use the loan proceeds to repay the construction and mezzanine loans and, after repayment of expenses, will distribute excess proceeds to its owners.
Ryman Hospitality Properties, which owns 61.2% of the joint venture, expects to receive a distribution of about $153 million, which it will use to repay a portion of the outstanding debt under the Ryman revolving credit facility.
Ryman is a Nashville-based real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.
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