Gaylord Entertainment Receives Payoff Of $138 Million On Note From Charter Communications
As a result of the $4.5 billion acquisition of Charter Communications by investor Paul G. Allen, Gaylord Entertainment expects to receive additional pretax proceeds of $130 million, representing the value of certain equity participation rights held by Gaylord Entertainment. The note and equity participation rights were received by Gaylord Entertainment in connection with Charter=s purchase of Gaylord Entertainment=s cable television systems in September 1995. The initial payment of $100 million announced on November 30 and the $138 million announced today, have been used to prepay outstanding bank indebtedness.
The $138 million payoff of the note will result in an after tax gain of an estimated $10 million, or $0.29 per share, in the fourth quarter of 1998. The collection of the $130 million in pretax proceeds from Gaylord Entertainment's equity participation rights, which is currently anticipated in early 1999, will result in an after tax gain of an estimated $85 million, or $2.55 per share.
Gaylord Entertainment Company is a diversified entertainment company operating principally in three industry segments; hospitality and attractions; broadcasting and music; and cable networks.