Ryman Hospitality Properties Secures $625 Million in Notes
Ryman Hospitality Properties Secures $625 Million in Senior Notes
Ryman Hospitality Properties, Inc. (NYSE: RHP) recently celebrated a significant achievement by completing a private placement that raised $625 million through the issuance of 6.500% senior unsecured notes due in 2033. This crucial step underscores the Company's commitment to growth and strategic investments, primarily aimed at enhancing their hospitality offering.
Strategic Use of Proceeds from the Notes Offering
Ryman's subsidiaries, RHP Hotel Properties, LP and RHP Finance Corporation, have outlined clear plans for the proceeds from this note issuance. Approximately $614 million of the net proceeds will go towards financing a major acquisition: the JW Marriott Phoenix Desert Ridge Resort & Spa. This resort, recognized for its luxurious features and extensive amenities, represents a pivotal addition to Ryman's portfolio, expected to elevate its market presence further.
The Importance of the Desert Ridge Acquisition
The planned purchase price for the Desert Ridge Acquisition stands at around $865 million. This luxury resort is expected to enrich Ryman’s offerings significantly, not only enhancing the diversity of their portfolio but also strengthening their competitive edge in the hospitality sector.
Funding Strategies and Future Plans
Alongside the issuance of the senior notes, Ryman also intends to optimize its capital structure by using proceeds from a recent public offering of 2,990,000 shares of common stock. Closing at a price of $96.20 per share, this move reflects a timely strategy to raise funds for significant investments and expansions.
Redemption Conditions for the Notes
Ryman has put in place a safety net regarding the newly issued notes. If for any reason the Desert Ridge Acquisition does not proceed as planned, those notes will be redeemable at a premium, ensuring the financial security of the investors involved.
Overview of Ryman Hospitality Properties
Ryman Hospitality Properties is recognized as a frontrunner in the lodging and hospitality real estate investment trust sector. With a portfolio that includes some of the largest non-gaming convention center hotels in the nation, Ryman not only focuses on providing exceptional hospitality services but also specializes in creating memorable entertainment experiences. The company's holdings include renowned destinations such as Gaylord Opryland Resort & Convention Center and Gaylord Rockies Resort & Convention Center.
Innovative Operations and Diverse Holdings
Ryman’s properties are primarily managed by Marriott International, encompassing over 11,000 rooms and boasting a staggering three million square feet dedicated to meeting and event spaces. The Company operates a sizeable entertainment segment that includes various iconic American music brands, enhancing its visibility and cultural influence in the industry.
Financial Performance and Future Outlook
As Ryman continues to expand its footprint through strategic acquisitions and a well-managed portfolio, the outlook remains promising. The involvement in the entertainment sector and diversification of property types enable Ryman to adapt to market changes effectively while also meeting the evolving needs of its customers.
Frequently Asked Questions
What type of financial instrument did Ryman Hospitality Properties issue?
Ryman issued $625 million in 6.500% senior unsecured notes due in 2033.
What will the proceeds of the note issuance be used for?
The proceeds will primarily fund the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa.
What happens if the Desert Ridge Acquisition does not close?
If the acquisition does not proceed, the notes will be redeemed at 100% of their issue price plus accrued interest.
Where can Ryman’s hospitality properties be found?
Ryman owns several prominent resorts across the United States, including the Gaylord brands, positioned in key leisure and convention destinations.
How does Ryman position itself in the hospitality sector?
Ryman is a leading real estate investment trust specializing in upscale convention center resorts, merging hospitality with entertainment to create unique experiences for guests.
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