VICI Properties Announces Pricing of Public Offering of $1.3 Billion of Senior Unsecured Notes

Rhea-AI Summary

VICI Properties (NYSE: VICI) has announced the pricing of a $1.3 billion public offering of senior unsecured notes 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)

Interest payments will be made semi-annually on April 1 and October 1, starting October 1, 2025. The offering is expected to close on April 7, 2025. The proceeds will be used to repay existing notes due 2025 (including $500 million at 4.375% and $800 million at 4.625%) and for general corporate purposes such as property acquisitions, improvements, and working capital.

Positive

• Refinancing of existing debt with longer maturities (extending to 2028 and 2035)
• Maintains strong liquidity position for potential property acquisitions and improvements
• Successful placement of large-scale offering ($1.3 billion) indicates strong market confidence

Negative

• Higher interest rates on new notes (4.750% and 5.625%) compared to existing notes (4.375% and 4.625%)
• Notes being issued slightly below par value (99.729% and 99.219%)

Insights

Financial Analyst

VICI Properties' $1.3 billion debt refinancing represents a strategic liability management move that exchanges short-term debt for longer-dated maturities. The company is effectively rolling over their 2025 notes (4.375% and 4.625%) into new 2028 notes (4.750%) and 2035 notes (5.625%).

This transaction reveals two key insights: First, VICI is proactively addressing near-term maturities well ahead of their 2025 deadlines, eliminating refinancing risk during a period of interest rate uncertainty. Second, management appears willing to accept modestly higher interest costs to secure extended maturities, trading approximately 30-100 basis points in higher rates for 3-10 years of additional runway.

For a REIT with VICI's scale ($33.7 billion market cap), this represents prudent balance sheet management rather than a transformative event. The higher coupon rates will increase annual interest expenses by roughly $13 million, a manageable increase given the company's size and stable cash flows from gaming property leases.

The slight discount to par on issuance (99.729% and 99.219%) aligns with current market conditions and doesn't materially impact the economics of the transaction. This refinancing maintains VICI's overall debt level while extending its maturity profile, positioning the company with improved financial flexibility for future acquisition opportunities mentioned as potential uses for any remaining proceeds.

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 priced a 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 will be 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 will be issued at 99.219% of par value and will mature on April 1, 2035.

Interest on the 2028 Notes and the 2035 Notes is payable in cash in arrears on April 1 and October 1 of each year, beginning on October 1, 2025. The offering is expected to close on April 7, 2025, subject to the satisfaction of customary closing conditions.

The Issuer intends to use the net proceeds from the offering to repay all or a portion of 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, and any remaining net proceeds will be used for general corporate purposes, which may include the acquisition and improvement of properties, capital expenditures, working capital and the repayment or refinancing of indebtedness.

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. are acting 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. are acting as senior co-managers for the offering, and CBRE Capital Advisors, Inc. and Citizens JMP Securities, LLC are acting as co-managers for the offering.

The offering is being 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: (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/20250326990839/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 and structure of VICI Properties' new notes offering in 2025?

VICI Properties is offering $1.3 billion in notes, split between $400 million due 2028 at 4.750% and $900 million due 2035 at 5.625%.

When will VICI Properties' new notes begin paying interest to investors?

Interest payments will begin on October 1, 2025, and continue semi-annually on April 1 and October 1.

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

The proceeds will primarily repay existing 2025 notes worth about $1.3 billion, with remaining funds for property acquisitions, improvements, and working capital.

What are the interest rates and maturity dates for VICI's new notes offering?

The 2028 Notes carry 4.750% interest maturing April 1, 2028, while the 2035 Notes offer 5.625% interest maturing April 1, 2035.