Ryman Hospitality Properties, Inc. Announces Closing of $625 Million of 6.500% Senior Notes Due 2033

Rhea-AI Summary

Ryman Hospitality Properties (NYSE: RHP) has successfully closed a $625 million private placement of 6.500% senior notes due 2033. The net proceeds of approximately $614 million will primarily fund the pending acquisition of JW Marriott Phoenix Desert Ridge Resort & Spa, valued at $865 million. The remaining acquisition cost will be covered by proceeds from a recently completed public offering of 2.99 million shares at $96.20 per share. The notes are senior unsecured obligations guaranteed by the Company and its subsidiaries. If the Desert Ridge acquisition fails to close, the notes will be subject to mandatory redemption at 100% of the issue price plus accrued interest. The notes were exclusively offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

Positive

• Successful raising of $614 million through senior notes offering to fund strategic acquisition
• Additional $288 million already secured through completed stock offering
• Strategic expansion into Phoenix market through acquisition of premium JW Marriott property
• Notes offering demonstrates strong market confidence and access to capital markets

Negative

• Increased debt burden with 6.500% interest rate through 2033
• Potential dilution from the 2.99 million share public offering
• Risk of mandatory redemption if Desert Ridge acquisition fails to close

Insights

Financial Analyst

Ryman Hospitality raised $625M in notes to fund luxury hotel acquisition, expanding portfolio with strategic debt financing at 6.5% rate.

Ryman Hospitality Properties has successfully closed a $625 million senior notes offering with a 6.5% interest rate maturing in 2033. The net proceeds of approximately $614 million will primarily fund the company's strategic acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa, which comes with a substantial price tag of about $865 million.

This financing structure reveals a calculated approach to capital allocation. Ryman is funding this acquisition through a two-pronged strategy: debt financing (these senior notes) covering about 71% of the purchase price, with the remaining 29% coming from equity through their recently completed public offering of 2.99 million shares at $96.20 per share.

The 6.5% interest rate on these notes reflects current market conditions and appears reasonably priced given the upward shift in the yield curve. The inclusion of a special mandatory redemption provision protects note purchasers should the acquisition fall through, demonstrating prudent risk management.

This transaction signals Ryman's continued focus on premium hospitality assets in desirable markets. Phoenix represents a strategic expansion target with strong tourism fundamentals and corporate demand. The acquisition aligns with Ryman's established portfolio of high-end properties and indicates confidence in the luxury hospitality segment despite economic uncertainties.

The transaction structure allows Ryman to leverage its balance sheet while avoiding excessive equity dilution. This debt-to-equity mix suggests management sees significant value-creation potential in the Desert Ridge property to justify the additional leverage, while maintaining financial flexibility for future opportunities.

NASHVILLE, Tenn., June 04, 2025 (GLOBE NEWSWIRE) -- Ryman Hospitality Properties, Inc. (NYSE: RHP) (the “Company”) announced today that its subsidiaries, RHP Hotel Properties, LP (the “Operating Partnership”) and RHP Finance Corporation (together with the Operating Partnership, the “Issuers”), completed the previously announced private placement of $625 million aggregate principal amount of 6.500% senior notes due 2033 (the “Notes”). The Notes are senior unsecured obligations of the Issuers and are guaranteed by the Company and its subsidiaries that guarantee the Operating Partnership’s existing credit facility, 4.750% senior unsecured notes due 2027, 7.250% senior unsecured notes due 2028, 4.500% senior unsecured notes due 2029 and 6.500% senior unsecured notes due 2032. The aggregate net proceeds from the sale of the Notes are expected to be approximately $614 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses.

The Operating Partnership intends to use the net proceeds of the offering to fund a portion of the approximately $865 million purchase price for the previously announced pending acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa located in Phoenix, Arizona (the “Desert Ridge Acquisition”) and to pay related fees and expenses of the Desert Ridge Acquisition. The balance of the purchase price of the Desert Ridge Acquisition will be funded with the net proceeds of the Company’s underwritten registered public offering of 2,990,000 shares of common stock (which includes the full exercise of the underwriters’ option to purchase additional shares) at a public offering price of $96.20 per share, which closed on May 21, 2025 (the “Common Stock Offering”).

If the Desert Ridge Acquisition is not consummated, the Notes will be redeemed in accordance with a special mandatory redemption at a redemption price equal to 100% of the issue price of the Notes, plus accrued and unpaid interest, if any, up to, but excluding, the special mandatory redemption date.

The Notes were offered only to persons reasonably believed to be qualified institutional buyers in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. The Notes were not registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Ryman Hospitality Properties, Inc.

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company’s holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company’s hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. The Company also owns an approximate 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry; Ryman Auditorium; WSM 650 AM; Ole Red; Category 10; Nashville-area attractions; Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas; and a majority interest in Southern Entertainment, a leading festival and events business. The Company operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company’s financial results.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the pending Desert Ridge Acquisition and the intended use of the net proceeds from the offering of the Notes and the Common Stock Offering. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with the pending Desert Ridge Acquisition including, but not limited to, the occurrence of any event, change or other circumstance that could delay the closing of the Desert Ridge Acquisition, or result in the termination of the transaction agreement for the Desert Ridge Acquisition; and adverse effects on the Company because of the failure to complete the Desert Ridge Acquisition. Other factors that could cause results to differ are described in the filings made from time to time by the Company with the SEC and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, and subsequent filings, including the Current Report on Form 8-K filed May 19, 2025. Except as required by law, the Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

Investor Relations Contacts:	Media Contact:
Mark Fioravanti, President and Chief Executive Officer	Shannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc.	Ryman Hospitality Properties, Inc.
(615) 316-6588	(615) 316-6725
mfioravanti@rymanhp.com	ssullivan@rymanhp.com
~or~
Jennifer Hutcheson, Chief Financial Officer
Ryman Hospitality Properties, Inc.
(615) 316-6320
jhutcheson@rymanhp.com
~or~
Sarah Martin, Vice President, Investor Relations
Ryman Hospitality Properties, Inc.
(615) 316-6011
sarah.martin@rymanhp.com

FAQ

What is the purpose of RHP's $625 million senior notes offering?

The senior notes offering will primarily fund the $865 million acquisition of JW Marriott Phoenix Desert Ridge Resort & Spa in Phoenix, Arizona, with the remaining balance funded through a public stock offering.

What is the interest rate and maturity of RHP's new senior notes?

The senior notes have an interest rate of 6.500% and will mature in 2033.

How much did Ryman Hospitality Properties raise in their recent stock offering?

RHP raised approximately $288 million through a public offering of 2,990,000 shares at $96.20 per share, which closed on May 21, 2025.

What happens to the RHP notes if the Desert Ridge acquisition fails?

If the acquisition is not completed, the notes will be subject to a special mandatory redemption at 100% of the issue price plus accrued and unpaid interest.

Who was eligible to purchase RHP's senior notes?

The notes were only offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, not to the general public.