Ryman Hospitality Extends Credit Waiver Period; Street Stays Bullish

Ryman Hospitality Properties announced on Dec. 22 that it has extended the provisional waiver from Mar. 31, 2021, through to Apr. 1, 2022, for the credit agreement related to its $700 million revolving credit facility, its $300 million term loan A facility, and its $382.5 million term loan B facility.

The credit facilities were obtained from a consortium of banks led by Wells Fargo Bank, National Association.

“The successful extension of our covenant waiver period, along with the additional financial and operational flexibility provided by the second amendment, will assist us in our efforts to recover from the COVID-19 pandemic and to quickly begin serving our group customers once the COVID-19 vaccine becomes widely available and groups are once again able to travel,” said Ryman Hospitality Properties (RHP) CEO Colin Reed. “Together with our unrestricted cash on hand and the remaining availability under our revolving credit facility, we continue to believe we will have ample liquidity to weather this ongoing period of disruption.”

The lodging and hospitality real estate investment trust’s stock price is presently trading at a discount of 32% to its 52-week high. (See RHP stock analysis on TipRanks)

On Dec. 15, Citigroup analyst Smedes Rose reiterated a Hold rating on the stock and raised the price target from $44 to $72 (15.5% upside potential).

From the rest of the Street, the stock scores a Strong Buy analyst consensus based on 4 Buys and 1 Hold. The average price target of $63.25 implies 1.4% upside potential over the coming year.

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