Ryman Hospitality Secures $625 Million in Senior Notes
Ryman Hospitality Properties Secures $625 Million in Senior Notes
Ryman Hospitality Properties, Inc. (NYSE: RHP) has announced a significant funding move designed to bolster its acquisition strategy. The company has successfully upsized and priced a private placement of $625 million in senior notes due 2033. Initially expected at $600 million, the increased principal amount reflects the strong market interest and investor confidence in Ryman's performance and growth plans.
Details of the Senior Notes Offering
The senior notes, which carry a coupon rate of 6.500%, are considered unsecured obligations of Ryman Hospitality's subsidiaries, specifically RHP Hotel Properties, LP and RHP Finance Corporation. These notes are guaranteed by Ryman Hospitality Properties and its subsidiaries linked to existing credit facilities and other unsecured notes.
Upon successful closure, anticipated on June 4, 2025, the net proceeds from these notes are projected to reach about $614 million. These funds will primarily be allocated towards the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa, a strategic investment that highlights Ryman's commitment to expanding its luxurious hospitality offerings.
Backing the Desert Ridge Acquisition
The funds from the note offering will not solely support the purchase price of approximately $865 million for the Desert Ridge Acquisition but will also cover related costs and fees. The remainder of the acquisition funding will be sourced from a registered public offering of 2,600,000 shares of common stock, priced at $96.20 per share, which is projected to close shortly after the notes offering.
Redemption Conditions and Investor Insights
In scenarios where the Desert Ridge Acquisition does not finalize, Ryman has outlined a special mandatory redemption provision for the notes at 100% of the issue price plus any accrued interest. This structured plan displays Ryman's proactive approach in ensuring investor protection and financial stability.
Furthermore, the offering of the notes is limited to institutional buyers who comply with regulatory mandates, thereby facilitating a robust investor environment. Regulatory frameworks under the Securities Act ensure that these securities are offered cautiously and responsibly.
Studying Ryman Hospitality's Portfolio
Ryman Hospitality Properties is recognized as a prominent player in the lodging and hospitality real estate investment trust sector. Their strategic focus is primarily on upscale convention center resorts, which have become increasingly popular among tourists and business travelers alike. The company boasts an impressive portfolio that includes several renowned properties such as the Gaylord Opryland Resort & Convention Center and the Gaylord Rockies Resort & Convention Center.
Each property signifies Ryman's commitment to quality and exceptional customer experience, facilitating a combined total of over 11,000 rooms and more than 3 million square feet of meeting space.
Entertainment Ventures
Moreover, Ryman Hospitality has a significant stake in the entertainment industry through their ownership of Opry Entertainment Group, a collection of celebrated country music brands. This diverse portfolio, which includes notable establishments like the Grand Ole Opry and Ryman Auditorium, enhances Ryman's role within the artistic community while offering synergistic opportunities that transcend conventional hospitality.
Conclusion
The recent upsizing and pricing of $625 million in senior notes mark a pivotal moment for Ryman Hospitality Properties, Inc. (NYSE: RHP). As the company strategically positions itself for expansion and investment in premium properties, it reflects the confidence of investors and solidifies Ryman's status as an industry leader in hospitality and entertainment.
Frequently Asked Questions
What is the purpose of the $625 million senior notes offering?
The proceeds will primarily fund the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa and associated expenses.
What is Ryman Hospitality known for?
Ryman Hospitality Properties is a leading lodging real estate investment trust specializing in upscale convention centers and resorts.
Who guarantees the senior notes issued by Ryman Hospitality?
The senior notes are guaranteed by Ryman Hospitality Properties and its subsidiaries linked to existing credit facilities.
What happens if the Desert Ridge Acquisition doesn't complete?
If the acquisition does not finalize, the notes will be redeemed at the issue price plus any accrued interest.
How will Ryman use the funds from the Common Stock Offering?
The funds will support the remaining balance of the Desert Ridge Acquisition’s purchase price.
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