Wells Fargo served as the administrative agent on a $100 million increase in the principal amount of Ryman Hospitality Properties's existing credit agreement, according to an SEC filing.
Ryman Hospitality Properties, Inc. entered into a Fifth Amended and Restated Credit Agreement among the company, as a guarantor, its subsidiary RHP Hotel Properties, LP, as borrower, certain other subsidiaries of the company party thereto, as guarantors, certain subsidiaries of the company party thereto, as pledgors, the lenders party thereto and Wells Fargo Bank National Association, as administrative agent, which amends and restates the company’s existing credit facility.
Pursuant to the Amended Credit Agreement, the Borrower increased to $500.0 million and extended the maturity of its outstanding senior secured term loan B facility, which originally had a principal amount of $400.0 million. The Term Loan B has a maturity date of May 11, 2024 and borrowings bear interest at an annual rate equal to, at the Borrower’s option, either (a) a LIBO rate determined by the reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing, subject to statutory reserves and a LIBO rate floor of 0.00%, plus the applicable margin of 2.25%, or (b) a base rate determined by reference to the higher of (1) the interest rate announced from time to time by Wells Fargo Bank National Association as its prime rate, (2) the federal funds effective rate plus 1.50% and (3) a LIBO rate determined by the costs of funds for U.S. dollar deposits for a one-month interest period plus 1.00%, subject to statutory reserves, and in any case, plus the applicable margin of 1.25%. At the closing, the Borrower drew down on the increased Term Loan B in full.
Net proceeds after repayment of the existing term loan B and certain transaction expenses payable at closing were approximately $114.3 million, and were used to pay down a portion of the Company’s revolving credit facility.
The Amended Credit Agreement also contemplates that the company and its subsidiaries and the lenders may enter into an amendment to the Amended Credit Agreement to (i) extend the termination date of the Company’s revolving credit facility, (ii) provide for the funding of a new senior secured term loan A facility in the original principal amount of $200.0 million and (iii) effect certain other changes.