NASHVILLE, Tenn.--(BUSINESS WIRE)--Ryman Hospitality Properties, Inc. (NYSE:RHP) today announced that it has repurchased all of the common stock warrants associated with its previously outstanding 3.75% convertible senior notes, which matured on October 1, 2014. No warrants remain outstanding following these repurchases.
The aggregate amount paid to the warrant counterparties in consideration for the repurchase of the remaining 4.7 million outstanding common stock warrants during the first quarter of 2015 was $154.7 million, funded with cash on hand and borrowings under the Company’s credit facility. Due to the change in the fair value of the warrants between December 31, 2014 and the settlement date (resulting from the increase in the market value of the Company’s common stock over this period), the Company expects to record, in its financial statements for the quarter ended March 31, 2015, an approximate $20 million loss on this change in the fair value, which will be included in other gains and losses, net. This represents a non-cash charge and does not impact the Company’s Adjusted EBITDA or Adjusted Funds From Operations.
Colin V. Reed, chairman of the board of directors and chief executive officer of Ryman Hospitality Properties, said, “We are pleased to report that we have completed our previously-announced plan to repurchase the warrants entirely for cash. These repurchases, along with our election to settle the principal value of the convertible notes in cash, have avoided a substantial amount of dilution that our stockholders would otherwise have experienced. We continue to believe in the underlying quality of our businesses and our assets and our prospects for future growth. We also believe that our strong balance sheet leaves us well-positioned to take advantage of future opportunities to create value for our shareholders.”
About Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company’s owned assets include a network of four upscale, meetings-focused resorts totaling 7,795 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, D.C. at National Harbor, a 192-room hotel opening in April 2015. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music’s finest performers for nearly 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; and 650 AM WSM, the Opry’s radio home. For additional information about Ryman Hospitality Properties, visit www.rymanhp.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain “forward-looking statements” concerning the Company’s expectations, future results and underlying assumptions, and other statements that are not necessarily based on historical facts. 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 described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. 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.