Gaylord replaces debt with $925 million facility at Libor plus 225 bps

By Susanna Moon

Chicago, Aug. 2 - Gaylord Entertainment Co. said it refinanced its credit facility set to mature in July 2012 on Monday with a new $925 million credit facility due August 2015.

The facility comprises a $525 million revolving credit line, $200 million of which will be drawn at close, and a fully funded $400 million term loan.

Interest on the facility will initially be Libor plus 225 basis points and will potentially drop to Libor plus 200 bps in 2012, according to an earnings release for the second quarter.

Pricing is based on an implied credit facility debt service coverage ratio.

The facility "provides the company with increased flexibility in terms of revolving credit capacity and financial covenants to pursue growth opportunities," the release said.

The previous facility comprised a $300 million revolving credit line and a $700 million term loan.

As of June 30, $300 million of debt was undrawn under the company's facility, and the lending banks had issued $8 million in letters of credit, which left $292 million of availability under the credit facility.

Gaylord is a Nashville hospitality and entertainment company.

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