Ryman Hospitality Properties Announces Stock Offering
NASHVILLE, Tenn. — Ryman Hospitality Properties, Inc. (NYSE: RHP) is embarking on a strategic move by initiating an underwritten registered public offering of 2,300,000 shares of its common stock. This decision is part of the company’s broader strategy to bolster its financial standing and support its ongoing projects.
Purpose of the Offering
The anticipated net proceeds from the offering will primarily support the RHP Hotel Properties, LP. This partnership intends to allocate the proceeds to finance a segment of the significant purchase price required for the recently disclosed acquisition of JW Marriott Phoenix Desert Ridge Resort & Spa. This acquisition is estimated to cost around $865 million, underlining the scale of Ryman's ambitions in the hospitality sector.
Funding Composition
Ryman Hospitality Properties plans to fund the remaining amount of the purchase price through a mix of liquid cash and various debt instruments. This may encompass borrowings from the Operating Partnership’s revolving credit facility, unsecured debt financing, and assumptions of existing secured loans associated with properties in question.
Nature of the Offering
The successful completion of this offering is independent of the Desert Ridge acquisition transaction closing timeline. Should there be any unexpected changes regarding the acquisition deal, the funds raised will still be directed toward supporting overall corporate functions.
Management of the Offering
Leading financial institutions, including Morgan Stanley, BofA Securities, J.P. Morgan, and Wells Fargo Securities, are working collaboratively as joint book-running managers for this offering. While the final arrangement will depend on market conditions, the professional expertise of these institutions is expected to guide the transaction effectively.
Registration Details
The offering is conducted under an effective shelf registration statement on Form S-3 with the Securities and Exchange Commission. All necessary materials will be comprehensively filed and made available for public access, ensuring transparency and compliance with SEC regulations.
Company Overview
Ryman Hospitality Properties, a prominent name in the lodging and hospitality real estate investment trust (REIT) space, specializes in high-end convention center resorts and entertainment experiences. With properties including the renowned Gaylord convention centers, along with the JW Marriott San Antonio Hill Country Resort & Spa, the company has solidified its reputation in the industry.
A Vast Portfolio
The company's portfolio encompasses five of the largest non-gaming convention center hotels in the U.S., showcasing its strategic decision to invest in high-value assets located in key leisure destinations. Additionally, Ryman maintains a controlling interest in the Opry Entertainment Group, representing iconic country music brands and venues, enhancing its diverse entertainment offerings.
Investor Relations
For inquiries regarding the offering or corporate matters, Ryman Hospitality Properties emphasizes maintaining open communication. Mark Fioravanti, the President and CEO, and Jennifer Hutcheson, the CFO, are leading these communications, demonstrating the company's commitment to transparency and investor engagement.
Contact Information
Should investors or the media have any questions, they can reach out to the dedicated contacts at Ryman Hospitality Properties, ensuring that all stakeholders remain informed and engaged as the company navigates this significant offering and ongoing business strategies.
Frequently Asked Questions
What is the purpose of Ryman's stock offering?
The stock offering aims to raise funds primarily for the acquisition of JW Marriott Phoenix Desert Ridge Resort & Spa and general corporate purposes.
How many shares are being offered in the public offering?
Ryman Hospitality Properties is offering 2,300,000 shares of its common stock, with an option for underwriters to purchase an additional 345,000 shares.
Who is managing the offering?
The offering is managed by notable financial institutions including Morgan Stanley, BofA Securities, J.P. Morgan, and Wells Fargo Securities as joint book-running managers.
Is the offering contingent on the Desert Ridge acquisition?
No, the completion of the stock offering is not contingent on the Desert Ridge acquisition being finalized.
What other properties does Ryman Hospitality own?
Ryman Hospitality manages several premier resorts, including Gaylord Opryland, Gaylord Palms, Gaylord Texan, and Gaylord Rockies, catering to the upscale convention market.
