ORLANDO, Florida—Gaylord Entertainment Company’s future in the near term is unobstructed by debt maturities, the company’s CFO said earlier this month.
During a presentation at the Bank of America Merrill Lynch Leveraged Finance Conference held at the Loews Royal Pacific Resort at Universal Orlando in Florida, Gaylord Senior VP and CFO Mark Fioravanti indicated the company has no debt maturities to deal with until 2014.
“It’s a fairly straight-forward balance sheet,” Fioravanti said during a webcast of his conference presentation.
The company had US$1.1 billion of net debt on the books as of 30 September. Maturities are as follows:
2014
• 6.75% unsecured notes: US$360 million
• 3.75% convertible notes: US$152.2 million
• Total: US$512.2 million
2015
• Term loan: US$400 million
• Revolver: US$200 million
• Total: US$600 million; total is comprised of term loan and revolver loan.
Gaylord’s US$925-million bank facility has US$325 million of capacity remaining, Fioravanti said. It bears interest at a rate of the London Interbank Offered Rate plus 225 basis points with no LIBOR floor.
The company has room on its balance sheet to add more debt for projects, Fioravanti said. Still, Gaylord plans to delever its balance sheet during “the next several years,” he said.
Colorado development
Speaking on the company’s planned 1,500-room project in Aurora, Colorado, Fioravanti said Gaylord would make a “go/no go” decision in March, when it learns whether it is granted incentives from the state of Colorado for the approximately US$800-million project.
The company still is working to bring on a capital partner to help shoulder some of the cost of the project, while Gaylord would retain between 20% and 40% of equity in the development. Gaylord also could recycle capital to use on the project.
“The good news is we won’t really spend any real capital on this project until mid 2013,” Fioravanti said. The development is planned to break ground in mid-to-late 2012 with an expected completion date of late 2015 to early 2016.
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