Ryman Hospitality Properties executives have finalizes the addition of a $400 million loan to their credit agreement.
The new senior secured loan will mature in January 2021 and leaves Nashville-based Ryman — once it pays off about $230 million in convertible notes this fall as planned — with few large financing needs between now and 2017. The loan has interest at a rate of LIBOR plus 3 percentage points and is secured by the company’s main hotels, the equity interests in the subsidiaries that own the hotels and a range of other assets.
“We are pleased to have completed the addition of the new term loan to our credit facility,” said Colin Reed, chairman, president and CEO of Ryman. “The new term loan was well received by lenders and the favorable pricing and terms of the facility are a signal of the confidence in our strategy and recognition of the value of our assets.”
Deutsche Bank Securities was the lead arranger of the new loan, while Wells Fargo Securities, JPMorgan Securities, US Bank and Merrill Lynch also pitched in.
Shares of Ryman (Ticker: RHP) closed Wednesday trading at $47.07, up slightly on the day. Year to date, they're up about 13 percent.