Gaylord Entertainment Company’s 3.75% Convertible Senior Notes Remain Convertible
NASHVILLE, Tenn.--(BUSINESS WIRE)--Gaylord Entertainment Company (NYSE: GET) today announced that its 3.75% Convertible Senior Notes due October 1, 2014, remain convertible at the option of the holders through June 30, 2011, the last business day of the current fiscal quarter.
The notes remain convertible because the last reported sale price of the company’s common stock for at least 20 trading days during the 30 consecutive trading-day period ending on March 31, 2011, was greater than 120 percent of the conversion price in effect on such day.
The company will deliver shares of its common stock or pay cash upon conversion of any notes surrendered prior to June 30, 2011. If shares are delivered, cash will be paid in lieu of fractional shares only. Issued in September 2009, the notes are currently convertible at a rate of 36.6972 shares of common stock per $1,000 principal amount of notes, which is equal to a conversion price of $27.25 per share.
There is approximately $360 million in aggregate principal amount of notes outstanding.
If all outstanding notes are surrendered for conversion, the aggregate number of shares of common stock issued would be approximately 13.2 million. The notes could be convertible after June 30, 2011, if the sale price condition described above is met in any future fiscal quarter or if any of the other conditions to conversion set forth in the indenture governing the notes are met.
About Gaylord Entertainment
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com. This press release contains statements as to future events, including the possibility that the notes may be convertible in future periods, that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that affect the trading price of our common stock and the convertibility of the notes. These include the risks and uncertainties associated with the flood damage to Gaylord Opryland and our other Nashville-area Gaylord facilities and out rebuilding effort, which include effects of the hotel closure such as the possible loss of experienced employees, the loss of customer goodwill, uncertainty of future hotel bookings and other negative factors yet to be determined, and risks associated with compliance with the Company’s $1.0 Billion Credit Facility; economic conditions affecting the hospitality business generally, rising labor and benefits costs, the timing of any new development projects, increased costs and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company’s hotels, our ability to successfully operate our hotels and our ability to obtain financing for new developments. Other factors that could affect operating and financial results are described in the filings made from time to time by the Company with the Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2010. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.