Ryman Hospitality Properties, Inc. announced that certain of its subsidiaries priced the private placement of $400 million aggregate principal amount of 5% senior notes due 2023.
The notes will be senior unsecured obligations of the Company’s issuing subsidiaries and will be guaranteed by the Company and all of the Company’s subsidiaries that guarantee or pledge assets as collateral for its existing senior secured credit facility.
Subject to customary closing conditions, the issuers expect the private placement of the notes to close on April 14, 2015. The aggregate net proceeds from the sale of the notes are expected to be approximately $392 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses.
The Company intends to use substantially all of the net proceeds from the offering to repay the amounts outstanding under the term loan A, eliminating the term loan A, and to repay a portion of the amounts outstanding under the revolving credit facility of its existing credit facility. The Company’s $400 million term loan B will remain outstanding.
The notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.