Gaylord Entertainment increased its revolving credit facility from $65 million to $100 million following a high-yield offering. The company had a $25 million revolver that was taken out by a $350 million high-yield deal. In conjunction with the bond deal, the company fired up a new $65 million credit with a pre-approved extension to $100 million, which the company has exercised, according to David Kloeppel, Gaylord's cfo.
The $350 million high-yield deal closed Nov. 13. The proceeds of that offering were used to refinance existing bank loans and the indebtedness of ResortQuest International, which Gaylord acquired in November. "[The new revolver] provides us with an added level of liquidity--an appropriate level of liquidity for a company of our size," Kloeppel said.
Deutsche Bank and Bank of America led the facility and were the lead on the previous revolver as well. "We've had a long relationship with both banks," Kloeppel said. The facility has a pricing option of LIBOR plus 31/2% or the lead bank's prime rate plus 21/4%. The company was satisfied with the pricing, Kloeppel added. The Nashville, Tenn.-based company owns and operates Gaylord Hotels and ResortQuest as well as the Ryman Auditorium, the Grand Old Opry, Wildhorse Saloon and WSM Radio in Nashville.