New Issue: Gaylord Entertainment upsizes 10-year notes to $350 million, yield 8%

By Paul A. Harris

St. Louis, Oct. 28 - Gaylord Entertainment Co. priced an upsized offering of $350 million of senior notes due Nov. 15, 2013 (B3/B-) at par Tuesday to yield 8%.

The deal was increased from $225 million. Price talk was for a yield of 8 1/8%-8 3/8%.

Banc of America Securities, Deutsche Bank Securities and CIBC World Markets were bookrunners on the Rule 144A deal. The co-managers were Citigroup and Fleet Securities.

Gaylord will use proceeds to repay its subordinated term loan and mezzanine loan and to repay ResortQuest International, Inc. debt.

The issuer is a Nashville hospitality and entertainment company.

Issuer:	Gaylord Entertainment Co.
Amount:	$350 million (from $225 million)
Maturity:	Nov. 15, 2013
Security description:	Senior notes
Bookrunners:	Banc of America Securities, Deutsche Bank Securities, CIBC World Markets
Co-managers:	Citigroup, Fleet Securities
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	380 basis points
Call features:	Callable after Nov. 15, 2007 at 104, then 102.667, 101.333, declining to par on Nov. 15, 2011 and thereafter
Equity clawback:	Until Nov. 15, 2006 for 35% at 108.0
Settlement date:	Nov. 12
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8 1/8%-8 3/8%

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