Gaylord Entertainment planning to de-lever after hitting peak debt level upon hotel completion

By Jennifer Lanning Drey

Portland, Ore., July 10 - Gaylord Entertainment is at peak leverage after completing construction of a facility in the Washington, D.C., area during the first quarter but expects to naturally de-lever going forward, David Kloeppel, chief financial officer of Gaylord, said during a Thursday presentation at the Oppenheimer Consumer Growth Conference in Boston.

The company's goal is to reach a ratio of between 4 times and 5 times debt to EBITDA.

"We think that's a manageable objective. As we look at where we're going naturally here over the next 12 to 18 months, we should be well into the high 4s or low 5s of leverage without any kind of radical debt reduction strategy that we may try to implement," Kloeppel said.

Gaylord had long-term debt, including current portions, of $1.17 billion at March 31, according to a company earnings release.

The company's future growth plans include expanding its Opryland property in Nashville, Tenn., with a new 435-room stand-alone hotel with completion expected in first-quarter 2011.

Gaylord is also expanding its Texan Resort property in Grapevine, Texas, with completion estimated to be in third-quarter 2010.

Gaylord Entertainment is a Nashville-based hospitality and entertainment company.

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