NASHVILLE, Tenn.--(BUSINESS WIRE)--Ryman Hospitality Properties, Inc. (NYSE:RHP) (the “Company”) announced today that its 3.75% Convertible Senior Notes due October 1, 2014 remain convertible at the option of the holders through June 30, 2014, the last business day of the current fiscal quarter. The company issued the notes in September 2009.
The notes remain convertible because the last reported sale price of the company’s common stock for at least 20 trading days during the 30 consecutive trading-day period ending on March 31, 2014, was greater than 120 percent of the conversion price in effect on such day.
The company will, at its option, deliver shares of its common stock, cash, or a combination of shares of its common stock and cash, upon conversion of any notes surrendered through June 30, 2014. If shares are delivered, cash will be paid in lieu of fractional shares only. The notes are currently convertible at a rate of 47.4034 shares of common stock per $1,000 principal amount of notes, which is equal to a conversion price of $21.10 per share. Currently, the company has elected to settle the conversion of each $1,000 principal amount of notes with a cash payment of $1,000 and the remaining conversion value in shares of its common stock. The company may elect a different settlement method in the future.
There is approximately $304.1 million in aggregate principal amount of notes outstanding.
If all outstanding notes are surrendered for conversion and the company elects to deliver shares of its common stock, the aggregate number of shares of common stock issued would be approximately 14.4 million, based on the current conversion rate. The notes will also be convertible after June 30, 2014 through the close of business on September 29, 2014, pursuant to the indenture governing the notes without regard to the price of the Company’s common stock during any period.
About Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE:RHP), is a real estate investment trust 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 world-class 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 and the Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland. The Company also owns and operates a number of 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 WSM-AM, 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 contains “forward-looking statements” concerning the Company’s expectations, future results and underlying assumptions, and other statements that are not necessarily based on historical facts. An example of these statements is the form of payments by the Company in connection with notes surrendered for conversion. 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, 2013 and subsequent Quarterly Reports on Form 10-Q. 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.