Ryman Hospitality Properties, a lodging and hospitality real estate investment trust (REIT) that specializes in convention center resorts and entertainment experiences, completed a series of refinancing transactions that extend maturities of the company’s $700 million revolving credit facility and $500 million term loan B, and eliminates mortgage collateral requirements in its credit facility.
“We are pleased to take advantage of current capital market conditions to refinance our credit facility and bolster an already solid balance sheet, with terms that provide us additional flexibility through the release of mortgage collateral,” Mark Fioravanti, president and CEO of Ryman Hospitality Properties, said. “Proceeds from the $500 million term loan B are being used to pay down the existing balance of approximately $370 million on the old term loan B with the remaining proceeds being used for general corporate purposes. We are pleased with our bank group’s on-going support and look forward to continuing to execute on our long-term goals.”
Led by Wells Fargo, the company refinanced its existing $700 million revolving credit facility, extending its maturity from 2024 to 2027, with the option to extend the maturity date for a maximum of one additional year through either a single 12-month extension option or two individual six-month extensions. Pricing will be determined by a leverage-based pricing grid ranging from 140 to 200 basis points over, at the company’s election, adjusted term SOFR or adjusted daily simple SOFR (compared to the previous pricing of 140 to 195 basis points over LIBOR). The company also restructured the collateral package for the credit facility by obtaining release of its four mortgages on Gaylord Opryland, Gaylord Palms, Gaylord Texan and Gaylord National assets, instead providing the lenders with equity pledges on two assets, Gaylord Opryland and Gaylord Texan, which increases the company’s unencumbered asset pool. The revolver was undrawn at closing.
The company also refinanced its secured $500 million term loan B, which had an outstanding balance of $370 million, to a new $500 million term loan B. The maturity of the term loan B has been extended from 2024 to 2030, with pricing of 275 basis points over, at the company’s election, adjusted term SOFR or adjusted daily simple SOFR.
