"We are pleased to have completed the refinancing of our creditfacility, especially given the current volatile state of the creditmarket," David Kloeppel, executive vice president and CFO ofGaylord Entertainment, says in a release. "These commitments are asignal of the confidence our bank group has in our strategy andtheir recognition of the significant value of our assets."

|

According to Gaylord's first quarter results, the company hadoutstanding long-term debt of about $1.2 billion. "They had justopened a hotel outside of Washington, DC in April and at the end ofthe first quarter they had the debt load of that new property,"explains Robert LaFleur, gaming, lodging and leisure analyst forSusquehanna Financial Group LLP.

|

Another analyst who did not want to be named tells GlobeSt.comthat some debt that Gaylord had on the books had restrictivecovenants which prevented them from repurchasing a number of sharesthey wanted to buy. The new credit facility removed thoserestrictions and also allows the company to pursue plans fordevelopment of their conference hotels, he says.

|

"They have articulated two expansion programs at two of theirproperties," says LaFleur. "One is an expansion of their NationalResort & Convention Center [in National Harbor, MD] and theother is of the Gaylord Texan in Dallas."

|

According to the anonymous source Gaylord also has expressedinterest in developing a resort in the western US in addition todeveloping a bay-front resort at Chula Vista, a city outside SanDiego. Plans for that development have been on again, off again forsome time, the analysts agree.

|

Gaylord has plans to release its second quarter earnings resultsand outlook during a conference call Aug. 5. On the hospitalityside, the company currently operates four signature resort andconvention centers, including Gaylord Palms in Orlando, FL, GaylordTexan in Dallas, Gaylord Opryland in Nashville and Gaylord Nationalin National Harbor, MD.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.