Ryman Hospitality shares fall after launching 5.1 million-share offering

Corporate Action

โดย Yahoo Finance·

Summary · why it matters

Ryman Hospitality Properties shares fell 3.3% in pre-market trading after the company launched an underwritten public offering of 5.1 million common shares to help finance its planned acquisition of two major Orlando resort properties. The company intends to use the net proceeds from the equity raise to fund part of the approximately $1.38 billion purchase price for the previously announced acquisition of the JW Marriott Orlando Grande Lakes Resort and The Ritz-Carlton Orlando, Grande Lakes. The underwriters will also receive a 30-day option to purchase up to an additional 765,000 shares. Ryman expects to finance the remaining amount through a combination of cash on hand and additional debt, including potential borrowings under its revolving credit facility, unsecured debt financing, or the assumption of an existing secured loan. Completion of the equity offering is not conditional on the Grande Lakes transaction going ahead and is expected to occur before the acquisition itself closes; if the acquisition fails to proceed, the net proceeds would be allocated to general corporate purposes. BofA Securities, J.P. Morgan, Morgan Stanley, and Wells Fargo Securities are joint book-running managers, with Deutsche Bank Securities, BTIG, Credit Agricole CIB, Scotiabank, SMBC Nikko, and Raymond James also participating as bookrunners.

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