VICI Properties Announces Closing of $1.3 Billion Senior Unsecured Notes Offering

Rhea-AI Summary

VICI Properties (NYSE: VICI) has successfully completed a $1.3 billion senior unsecured notes offering through its subsidiary VICI Properties L.P. The offering consists of:

• $400 million of 4.750% notes due 2028 (issued at 99.729% of par value)
• $900 million of 5.625% notes due 2035 (issued at 99.219% of par value)

The proceeds will be used to repay existing debt obligations, including:

• $500.0 million of 4.375% senior notes due 2025
• $799.4 million of 4.625% senior exchange notes due 2025
• $0.6 million of 4.625% senior notes due 2025

Positive

• Successful completion of large-scale $1.3B debt offering indicates strong market confidence
• Extension of debt maturities from 2025 to 2028/2035 improves debt profile
• Strong banking syndicate support with multiple major financial institutions

Negative

• Higher interest rates on new notes (4.750% and 5.625%) compared to existing debt (4.375% and 4.625%)
• Notes issued slightly below par value, indicating slightly higher effective borrowing cost

Insights

Financial Analyst

VICI Properties' $1.3 billion senior unsecured notes offering represents a strategic debt refinancing maneuver with mixed financial implications. The company is effectively exchanging its near-term debt obligations due in 2025 for longer-dated maturities (2028 and 2035), which enhances its debt maturity profile and reduces near-term refinancing risk.

However, this maturity extension comes at a cost. The new 4.750% notes due 2028 and 5.625% notes due 2035 carry higher interest rates than the retired debt, which had rates of 4.375% and 4.625%. This will incrementally increase VICI's interest expenses going forward.

From a balance sheet perspective, this transaction is leverage-neutral as the company is merely replacing existing debt with new debt of equivalent principal value. No new capital is being raised for acquisitions or operations.

The timing is notable—VICI is proactively addressing 2025 maturities well in advance, suggesting prudent treasury management in an environment where interest rates have been elevated. For a REIT like VICI that owns gaming properties, extending debt maturities provides greater certainty around capital structure, which helps support dividend stability.

While paying higher rates isn't ideal, securing long-term financing now eliminates the risk of potentially even higher refinancing costs if rates remain elevated in 2025. This transaction demonstrates management's focus on maintaining a stable, long-term capital structure at the cost of some interest expense pressure.

NEW YORK--(BUSINESS WIRE)-- VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”) announced today that its subsidiary, VICI Properties L.P. (the “Issuer”), has completed its public offering of $1.3 billion in aggregate principal amount of senior unsecured notes (the “Notes”) consisting of:

• $400 million aggregate principal amount of 4.750% senior unsecured notes due 2028 (the “2028 Notes”). The 2028 Notes were issued at 99.729% of par value and will mature on April 1, 2028.
• $900 million aggregate principal amount of 5.625% senior unsecured notes due 2035 (the “2035 Notes”). The 2035 Notes were issued at 99.219% of par value and will mature on April 1, 2035.

The Issuer intends to use the net proceeds from the offering to repay its outstanding (i) $500.0 million in aggregate principal amount of 4.375% senior notes due 2025, (ii) $799.4 million in aggregate principal amount of 4.625% senior exchange notes due 2025, and (iii) $0.6 million in aggregate principal amount of 4.625% senior notes due 2025.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. acted as joint book-running managers for the offering. BNP Paribas Securities Corp., Capital One Securities, Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. acted as senior co-managers for the offering, and CBRE Capital Advisors, Inc. and Citizens JMP Securities, LLC acted as co-managers for the offering.

The offering was made pursuant to an effective shelf registration statement filed by the Company and the Issuer with the Securities and Exchange Commission (the “SEC”) and only by means of a prospectus and prospectus supplement. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from: Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, email: wfscustomerservice@wellsfargo.com, phone 1-800-645-3751; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: barclaysprospectus@broadridge.com, phone: 1-888-603-5847; and Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: prospectus@citi.com, phone: 1-800-831-9146, or by visiting the EDGAR database on the SEC’s web site at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About VICI Properties

VICI Properties Inc. is an S&P 500® experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality, wellness, entertainment and leisure destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio is comprised of approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. Its properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including Cabot, Cain International, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield, Kalahari Resorts, and Lucky Strike Entertainment. VICI Properties also owns four championship golf courses and approximately 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ goal is to create the highest quality and most productive experiential real estate portfolio through a strategy of partnering with the highest quality experiential place makers and operators.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” “will,” and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s or the Issuer’s control and could materially affect actual results, performance, or achievements. Important risk factors that may affect the Company’s business, results of operations and financial position are detailed from time to time in the Company’s filings with the SEC. The Company and the Issuer do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Press Release Category: Capital Markets

View source version on businesswire.com: https://www.businesswire.com/news/home/20250407251789/en/

Investor Contacts:

Investors@viciproperties.com

(646) 949-4631



Or



David Kieske

EVP, Chief Financial Officer

DKieske@viciproperties.com



Moira McCloskey

SVP, Capital Markets

MMcCloskey@viciproperties.com

Source: VICI Properties Inc.

FAQ

What is the total value of VICI Properties' new senior unsecured notes offering in 2024?

VICI Properties completed a $1.3 billion senior unsecured notes offering, consisting of $400 million due 2028 and $900 million due 2035.

What are the interest rates for VICI's new 2028 and 2035 notes?

The 2028 notes carry a 4.750% interest rate, while the 2035 notes have a 5.625% interest rate.

How will VICI Properties use the proceeds from its $1.3B notes offering?

VICI will use the proceeds to repay approximately $1.3 billion in existing debt due in 2025, including notes with 4.375% and 4.625% interest rates.

What is the maturity date for VICI Properties' new senior unsecured notes?

The $400M notes will mature on April 1, 2028, and the $900M notes will mature on April 1, 2035.