Minority acquisition includes Grand Ole Opry, Ryman Auditorium and Circle TV
Ryman Hospitality Properties has announced that Atairos and NBCUniversal will acquire a 30% minority ownership stake in Opry Entertainment Group which includes the Grand Ole Opry, The Ryman Auditorium, Circle Network, WSM radio, and Blake Shelton’s Ole Red properties. The two companies will be investing approximately $293 million, which Atairos is covering approximately $278 million while NBCUniversal will directly invest up to approximately $15 million. The investment values the Nashville-based Opry Entertainment Group at $1.415 billion.
“Over the last decade we have shared our excitement about the bright future of our entertainment business and the significant value creation opportunities that exist as we extend our reach nationwide and transition Opry Entertainment Group to an integrated country lifestyle platform,” shares Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties.
He continues, “Back in June 2021, given the unsolicited interest we had received, we embarked on a formal process to identify a strategic partner that shares our vision for growing Opry Entertainment Group to a position where it can operate independently of our core hospitality business while enabling our shareholders to participate in the significant upside for OEG that lies ahead.
“Atairos and NBCUniversal have a great appreciation for the legendary assets under our stewardship and we are aligned on protecting and nurturing them for future generations of music lovers to enjoy. We view this partnership as a significant opportunity to strengthen these beloved institutions and cement their influence on American music culture. We remain focused on creating sustainable long-term value for our shareholders as we seek new ways to connect artists and fans through one-of-a-kind experiences.”
“We are excited to invest in Opry Entertainment Group alongside our strategic partner Atairos. We look forward to exploring opportunities to leverage our media, technology and content creation expertise to help Opry Entertainment Group accelerate its plans and bring its iconic brands, as well as artists and storied cities, to music lovers worldwide,” adds David Pietrycha, Executive Vice President, Strategy and Business Development at NBCUniversal.
Upon completion of the transaction, Ryman Hospitality Properties will retain a controlling 70% interest in Opry Entertainment Group. The transaction, which is subject to customary conditions, is expected to close in second quarter of 2022. Upon closing, Ryman Hospitality Properties expects to receive gross transaction proceeds of approximately $593 million, comprised of the Atairos and NBCUniversal investment and borrowings from a new $300 million Term Loan B facility secured by Opry Entertainment Group assets. Ryman Hospitality Properties expects to use these proceeds to pay transaction expenses, fully repay its $300 million Term Loan A and substantially all the borrowings outstanding under its revolving credit facility, thereby reducing leverage and creating balance sheet flexibility to allow Ryman Hospitality Properties to pursue continued reinvestment in its businesses.
