VICI Properties Announces Closing of $750 Million Senior Unsecured Notes Offering

Rhea-AI Summary

VICI Properties announced that its subsidiary, VICI Properties L.P., has completed a $750 million public offering of senior unsecured notes due 2031, with a 5.125% interest rate. The notes were issued at 99.643% of par value and will mature on November 15, 2031. The company plans to use the proceeds to repay its outstanding $750 million in 3.500% senior notes due 2025. The offering was managed by multiple financial institutions, including J.P. Morgan, Wells Fargo Securities, and Barclays, among others.

Positive

• Successful completion of $750M debt offering
• Strategic refinancing of existing debt at longer maturity (2031 vs 2025)

Negative

• Higher interest rate on new notes (5.125% vs 3.500% on existing notes)
• Notes issued slightly below par value at 99.643%

Insights

Fixed Income Analyst

<p>VICI Properties' refinancing of <money>$750 million</money> in notes represents a strategic debt management move, though at a higher cost. The new <percent>5.125%</percent> notes due 2031 will replace existing <percent>3.500%</percent> notes due 2025, increasing annual interest expenses by approximately <money>$12.2 million</money>. While this raises the cost of capital, it extends the maturity profile by 6 years, reducing near-term refinancing risk in an uncertain rate environment.</p><p>The slight discount to par (<percent>99.643%</percent>) suggests modest market appetite, reflecting current high-rate conditions. The impressive syndicate of 15 major financial institutions indicates strong institutional backing and validates VICI's credit quality. For retail investors, think of this like refinancing a mortgage - paying more in interest but gaining long-term stability.</p>

REIT Specialist

<p>This debt restructuring aligns with VICI's broader capital management strategy as a leading gaming REIT. The higher interest rate reflects current market conditions rather than company-specific concerns. The strong tenant base, including Caesars and MGM, provides stable cash flows to service this debt. The extension of maturity provides enhanced flexibility for future acquisitions and development projects.</p><p>The timing is noteworthy - by acting now, VICI avoids potential refinancing challenges in 2025 when <money>$750 million</money> would have come due. Think of it as paying an insurance premium for certainty. The successful placement demonstrates continued market confidence in VICI's business model and growth trajectory.</p>

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 $750 million in aggregate principal amount of 5.125% senior unsecured notes due 2031 (the “Notes”). The Notes were issued at 99.643% of par value and will mature on November 15, 2031.

The Issuer intends to use the net proceeds from the offering to repay its outstanding $750 million in aggregate principal amount of 3.500% senior notes due 2025.

J.P. Morgan, Wells Fargo Securities, Barclays, Deutsche Bank Securities, Goldman Sachs & Co. LLC, Morgan Stanley, BofA Securities, Citigroup, Scotiabank, BNP PARIBAS, Citizens Capital Markets, Truist Securities, SMBC Nikko, Mizuho and Capital One Securities acted as joint book-running managers for the offering. CBRE acted as co-manager 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: J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York, 10179, Attention: Investment Grade Syndicate Desk, telephone collect at 1-212-834-4533; Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service (telephone: (800) 645-3751 or email: wfscustomerservice@wellsfargo.com); Barclays Capital Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (888) 603-5847 or by email at Barclaysprospectus@broadridge.com; or Deutsche Bank Securities Inc., Attention: Prospectus Department, at 1 Columbus Circle, New York, NY 10019, by telephone at (800) 503-4611 or by email at Prospectus.Ops@db.com, 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 and entertainment 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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241219151564/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 interest rate and maturity of VICI Properties' new $750M notes offering?

The new notes have a 5.125% interest rate and will mature on November 15, 2031.

How will VICI Properties use the proceeds from its 2023 notes offering?

VICI Properties will use the proceeds to repay its outstanding $750 million in 3.500% senior notes due 2025.

What is the issue price of VICI Properties' 2031 senior unsecured notes?

The notes were issued at 99.643% of par value.

Who are the lead managers for VICI Properties' $750M notes offering?

J.P. Morgan, Wells Fargo Securities, Barclays, and Deutsche Bank Securities were among the joint book-running managers for the offering.