Gaylord amends, draws from its existing $925 million credit facility

By Tali David

Minneapolis, Aug. 7 - Gaylord Entertainment Co. used borrowings under its existing $925 million credit facility to fund the repurchase of 5 million shares of its common stock from TRT Holdings, Inc., according to a press release. The company repurchased the stock at $37.00 per share for proceeds of $185 million.

Gaylord also amended its $925 million facility, according to an 8-K filed with the Securities and Exchange Commission. Effective Aug. 6, the required lenders agreed that the company's repurchase of up to $200 million of its common stock from TRT Holdings and its affiliates during the period from Aug. 6 to Oct. 1 and its underwriting agreement with TRT Holdings and Deutsche Bank Securities Inc. will not constitute a default under the credit agreement.

The amendment also revises the consolidated tangible net worth financial covenant in the credit agreement by reducing the required covenant level by all amounts paid by the company in connection with the share repurchase.

As a result, the company is required to maintain a consolidated tangible net worth in an amount equal to at least $850 million plus 75% of net cash proceeds received in connection with any equity issuance, minus such amounts paid in connection with the stock repurchase.

Bank of America, NA, is the administrative agent.

Gaylord is a Nashville hospitality and entertainment company.

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