Ryman closes $700M note sale to fund $1.38B Orlando resort deal
What's the deal? Ryman Hospitality PropertiesDealroom has a profile for this one. Try Dealroom → has closed a $700 million private placement of 6.250% senior notes due 2035, raising roughly $689 million in net proceeds. The Nashville-based real estate investment trust will use the money to help fund its pending $1.38 billion acquisition of two Orlando resorts.
The targets: Ryman is buying the JW Marriott Orlando Grande Lakes ResortDealroom has a profile for this one. Try Dealroom → and the The Ritz-Carlton Orlando Grande LakesDealroom has a profile for this one. Try Dealroom → in Orlando, Florida. The remaining purchase price will come from an August 12 common stock offering of 5,865,000 shares and cash on hand.
What's the endgame? Ryman specialises in group-oriented, upscale convention center resorts. Its portfolio, managed by Marriott InternationalDealroom has a profile for this one. Try Dealroom →, spans five Gaylord convention hotels and two JW Marriott resorts, totalling 12,364 rooms and more than 3 million square feet of meeting space.
What could go wrong? The deal isn't done. If the Grande Lakes acquisition falls through, the notes will be redeemed at 100% of their issue price plus any accrued interest.
The details: The notes are senior unsecured obligations of Ryman's subsidiaries and guaranteed by the company. They were sold only to qualified institutional buyers and certain non-US buyers, and were not registered under the Securities Act.
The signal: The debt-and-equity financing package shows Ryman doubling down on the Orlando leisure and convention market, adding two upscale Marriott-branded properties to a portfolio already anchored by the largest non-gaming convention hotels in the US.
Image credit: Ken Lund
