To help fund construction of the Gaylord National Resort and Convention Center, Gaylord Entertainment Company has taken out a new $600 million credit facility, consisting of a $300 million delayed-draw term loan and a $300 million revolver. Although the resort, set to be built on the Potomac River just outside Washington, D.C., will not open until the first quarter of 2008, Key Foster, director of investor relations and treasury, said the company will start using the money now for construction purposes.
Both the revolver and the term loan are priced at LIBOR plus 2% and mature in March 2010. Banc of America Securities and Deutsche Bank Securities led this deal and previously led the company's 2003 credit facility. "These banks bring us a number of ideas for structuring," Foster said. "We are always looking to grow and they provide us with interesting and strategic ideas to help think through growth alternatives."