Ryman Hospitality Properties has completed a $700 million private placement of senior unsecured notes due 2035, with a 6.25% coupon, to finance the pending acquisition of the JW Marriott Orlando Grande Lakes Resort and The Ritz-Carlton Orlando, Grande Lakes.
The offering, issued by RHP Hotel Properties and RHP Finance Corporation and guaranteed by Ryman Hospitality and its subsidiaries, generated net proceeds of approximately $689 million after discounts and estimated expenses. The notes are structured to be redeemable at par plus accrued interest if the Orlando resort acquisition is not finalized.
The transaction complements a concurrent public offering of 5.865 million shares of Ryman Hospitality common stock at $117 per share, expected to raise roughly $686 million. Proceeds from both financings will support the $1.38 billion purchase of the two Orlando properties, according to regulatory filings.
Ryman Hospitality, a lodging and hospitality REIT, operates five Gaylord Hotels properties managed by Marriott International, totaling 12,364 rooms and over 3 million square feet of meeting space. The company also holds a 70% stake in Opry Entertainment Group.
The senior notes were sold to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S, exempt from U.S. Securities Act registration.
