S&P: Gaylord unaffected

Standard & Poor's said its corporate credit rating on Gaylord Entertainment Co. is not currently affected by Gaylord's agreement to repurchase five million shares of common stock from TRT Holdings Inc. for $185 million.

Gaylord funded the purchase price with borrowings under its existing $925 million credit facility, which had approximately $362 million of availability at June 30.

S&P said its previous base-case expectations for Gaylord were for leverage to improve to around 5x and EBITDA coverage of interest expense to improve to around 3x in 2012.

After factoring in the repurchase of TRT Holdings' shares, the agency said it currently expects leverage to be in the high-5x area and interest coverage to improve to around 3x at the end of 2012. These credit measures are still in line with the current rating.

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