Ryman Hospitality Properties has spent nearly $100 million to buy back and then cancel about 15 percent of the convertible senior notes that will mature next year.
Nashville-based Ryman's $98.6 million move — along with one investor's decision to convert $1.2 million of debt — lowered the amount of convertible notes outstanding to about $304 million from almost $360 million. The owner of the Gaylord Opryland hotel complex and other properties funded the purchase by tapping its $700 million revolving credit facility, which carries an interest rate of LIBOR plus 1.75 percent, more than a percentage point below the 3.75 percent of the convertibles, which were sold in the fall of 2009.
The repurchases also help lower the dilution that will occur when the convertible notes mature in October 2014. As part of its 2009 offering, Ryman (then still Gaylord Entertainment) also sold stock warrants that let holders buy the company's common shares (Ticker: RHP) for $26.68, a discount of 30 percent to their Tuesday closing price. The recent buybacks lowered the number of warrants outstanding to 13.9 million from 16.2 million shares.
POSTDATA: WARRANTY DEEDS