Ryman Hospitality's Strategic Move with Upsized Stock Offering
Ryman Hospitality Properties Concludes Major Stock Offering
Nashville, TN – Ryman Hospitality Properties, Inc. (NYSE: RHP) has successfully completed an upsized public offering of 2,990,000 shares of its common stock. This strategic move is part of the company’s broader plan to strengthen its portfolio and leverage opportunities in the hospitality market.
Details of the Stock Offering
The offering was priced at $96.20 per share, generating net proceeds of approximately $275 million. This figure accounts for underwriting discounts and other associated expenses. Interestingly, part of this stock sale included 390,000 shares made available due to the exercise of an underwriter’s option to buy additional shares, reflecting strong demand from investors.
Key Players in the Offering
A consortium of reputable financial institutions facilitated this offering, including Morgan Stanley, BofA Securities, J.P. Morgan, and Wells Fargo Securities, acting as joint book-running managers. Other notable bookrunners included Deutsche Bank Securities and BTIG, showcasing robust interest and involvement from the financial sector.
Funding the JW Marriott Acquisition
The proceeds from this stock offering aim to support the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa, valued at approximately $865 million. This acquisition is a significant milestone for Ryman Hospitality, expanding its footprint in a competitive hospitality market.
Financial Strategy for Acquisition
The balance of the acquisition cost will be covered through a combination of cash on hand and the proceeds from a private placement of $625 million in senior notes. This financial strategy underscores Ryman Hospitality's commitment to growth and expansion, leveraging diverse funding sources to achieve its goals.
Company Overview
Ryman Hospitality Properties, Inc. is recognized as a leading real estate investment trust in the hospitality sector, specializing in upscale resort accommodations and convention centers. Its properties include prestigious venues such as the Gaylord Opryland Resort & Convention Center and Gaylord Palms Resort & Convention Center, alongside a diverse portfolio of entertainment experiences.
Entertainment Segment and Community Impact
In addition to its hotel offerings, Ryman Hospitality significantly contributes to the entertainment landscape through its subsidiary, Opry Entertainment Group. This entity manages iconic country music venues and events, reinforcing the company’s commitment to enriching community culture while also enhancing shareholder value.
Future Prospects and Corporate Strategy
The completion of this stock offering and the subsequent acquisition of the Desert Ridge property exemplify Ryman Hospitality's strategy of thoughtfully expanding its portfolio while responding to evolving market demands. The company is well-positioned to capitalize on the increasing interest in premium hospitality experiences, especially in desirable locales.
Investor Relations Contact Information
For more details regarding investment opportunities and corporate developments, interested parties can reach out to:
Mark Fioravanti, President and CEO, Ryman Hospitality Properties, Inc. at (615) 316-6588 or via email at mfioravanti@rymanhp.com.
Frequently Asked Questions
What is the purpose of Ryman Hospitality's stock offering?
The stock offering is aimed at raising capital to fund the acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa and for general corporate purposes.
How many shares were offered in this stock sale?
Ryman Hospitality offered a total of 2,990,000 shares of common stock to investors.
What financial institutions were involved in the offering?
Key participants included Morgan Stanley, BofA Securities, J.P. Morgan, and Wells Fargo Securities among others.
What will happen if the Desert Ridge Acquisition isn’t completed?
If the acquisition does not proceed, the net proceeds from the offering will be used for general corporate purposes.
How can investors contact Ryman Hospitality for more information?
Investors can contact the company through its investor relations channels, specifically Mark Fioravanti at (615) 316-6588 or via email at mfioravanti@rymanhp.com.
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