Ryman Hospitality launches equity raise to partially finance acquisition of two Orlando resorts for $1.38 billion.
Ryman Hospitality Properties (RHP) shares declined 3.3% in pre-market trading after announcing a public offering of 5.1 million common shares. The proceeds will help fund the $1.38 billion acquisition of the JW Marriott Orlando Grande Lakes Resort and The Ritz-Carlton Orlando, Grande Lakes.
The company plans to cover the remaining acquisition cost through cash reserves and additional debt, including potential borrowings from its revolving credit facility or unsecured debt financing. Underwriters also have a 30-day option to purchase up to 765,000 additional shares, which could expand the capital raise.
The equity offering is expected to close before the resort acquisition, regardless of whether the deal proceeds. Ryman aims to finalize one of its largest transactions with this financing structure.