Ryman Hospitality's Strategic $600 Million Senior Notes Plan

Ryman Hospitality Properties Proposes $600 Million Senior Notes Offering

Recently, Ryman Hospitality Properties, Inc. (NYSE: RHP) made an exciting announcement regarding its financial strategies. The company is looking to seize opportunities by proposing a significant offering of senior notes, aiming for a total of up to $600 million. This move reflects their confidence and strategic planning in enhancing their operations and acquisitions.

Details of the Senior Notes Offering

The proposed offering will be carried out through its subsidiaries, RHP Hotel Properties, LP and RHP Finance Corporation. These senior notes, which are set to mature in 2033, are anticipated to be unsecured obligations backed by the company itself alongside its other subsidiaries. This structured approach ensures that Ryman Hospitality is well-prepared to meet its current and future financial obligations.

Use of Proceeds from the Offering

Ryman Hospitality intends to utilize the net proceeds from this offering to fund a substantial part of the acquisition cost for the JW Marriott Phoenix Desert Ridge Resort & Spa. The total purchase price for this acquisition is estimated at around $865 million. In addition to this, part of the proceeds will also cover any associated costs that arise during the acquisition process.

The capital requirements will be fulfilled through a combination of proceeds from this senior note offering and a recently announced common stock offering. This strategic financial planning demonstrates the company's commitment to sustain growth while expanding its presence in the hospitality market.

Importance of the JW Marriott Acquisition

Acquiring the JW Marriott Phoenix Desert Ridge Resort & Spa represents a pivotal moment for Ryman Hospitality. This acquisition not only enhances the company's portfolio but also reinforces its position within the hospitality industry, particularly in providing upscale accommodations and conference facilities. The Desert Ridge location is known for its luxurious amenities and prime location, making it an attractive addition to Ryman's existing venues.

Redemption Conditions of the Senior Notes

Like any financial offering, this senior notes offering is intricately structured. Should the acquisition not be successfully completed, Ryman Hospitality has arranged for a special mandatory redemption of the notes. This provision is designed to protect investors by ensuring their principal amount is repaid, along with any accrued interest, should unforeseen circumstances arise.

Strategic Positioning in the Hospitality Sector

Ryman Hospitality Properties, Inc. stands out as a leader in the lodging and hospitality real estate investment space. Beyond the planned acquisition, the company's extensive portfolio includes several renowned resorts, such as Gaylord Opryland Resort & Convention Center and Gaylord Texan Resort & Convention Center. Each property is strategically located to attract visitors for both leisure and business purposes, enhancing their operational footprint.

With a total of more than 11,000 rooms and extensive meeting spaces across its properties, Ryman Hospitality is well-equipped to meet the growing demand for both corporate gatherings and family vacations. The company prides itself on providing top-notch service and creating memorable experiences for guests.

Looking Ahead: Future Opportunities and Growth

As Ryman Hospitality continues to evolve, it is poised for future growth in a competitive marketplace. With the recent offering of senior notes, the company can strategically invest in high-value acquisitions like the JW Marriott while ensuring financial stability. Investors should keep a close eye on how these developments unfold, as they can significantly impact the company's trajectory.

Corporate Contact Information

For inquiries, investors are encouraged to reach out to:

Mark Fioravanti, President and Chief Executive Officer
(615) 316-6588
mfioravanti@rymanhp.com

Jennifer Hutcheson, Chief Financial Officer
(615) 316-6320
jhutcheson@rymanhp.com

Sarah Martin, Vice President, Investor Relations
(615) 316-6011
sarah.martin@rymanhp.com

Frequently Asked Questions

What is the purpose of the $600 million senior notes offering?

The proceeds will primarily fund the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa and cover related fees and expenses.

Who are the entities involved in the offering?

The offering involves RHP Hotel Properties, LP and RHP Finance Corporation.

What happens if the acquisition is not completed?

If the acquisition does not go through, the senior notes will be redeemed at the issue price plus any accrued interest.

What is Ryman Hospitality's market focus?

Ryman Hospitality focuses on upscale convention center resorts and hospitality experiences across the United States.

Who can participate in the notes offering?

The notes will be offered only to qualified institutional buyers and certain non-U.S. persons under applicable regulations.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

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