Atairos, NBCUniversal to invest in Ryman Hospitality's Opry Entertainment

Atairos Management LP and NBCUniversal Media LLC will acquire a 30% stake in Ryman Hospitality Properties Inc. subsidiary OEG Attractions Holdings LLC, which directly or indirectly owns the assets that comprise Opry Entertainment Group.

The 30% equity investment will be approximately $293 million, of which Atairos will directly invest roughly $278 million and NBCUniversal will directly invest up to approximately $15 million.

The investment values Nashville, Tenn.-based Opry at about $1.42 billion, including a recapitalization of Opry with a new $300 million term loan B and the assumption of a $137 million commercial mortgage-backed securities facility for Block 21, which Opry is acquiring.

Atairos agreed to make an additional $30 million investment in Opry depending on certain performance targets.

Ryman will retain a controlling 70% interest in Opry upon completion of the transaction, which is expected to occur in the second quarter, subject to customary conditions.

Opry operates country music brands including the Grand Ole Opry concert series, Ryman Auditorium and WSM 650AM.

Upon closing, Ryman expects to receive gross transaction proceeds of about $593 million, which the company plans to use to pay transaction expenses and to fully repay its $300 million term loan A and substantially all of the outstanding borrowings under its revolving credit facility.

Morgan Stanley & Co. LLC is Ryman's financial adviser and Bass Berry & Sims PLC is providing legal advice. Skadden Arps Slate Meagher & Flom LLP is offering tax counsel to Ryman.

Moelis & Co. LLC is financial adviser and Davis Polk & Wardwell LLP is legal adviser to Atairos.

JPMorgan Chase Bank NA and Morgan Stanley Senior Funding Inc. provided financing commitment for the transaction.