VICI Properties Inc. Announces Public Offering of Common Stock

Rhea-AI Summary

VICI Properties Inc. (NYSE: VICI) has announced a public offering of 16,500,000 shares of common stock, with an option for underwriters to purchase an additional 2,475,000 shares. The offering will occur through forward sale agreements, with BofA Securities and Citigroup acting as underwriters. While VICI will not receive immediate proceeds from this offering, any future cash raised will aid in property acquisitions, developments, and corporate purposes. The offering is conducted under an effective shelf registration statement, with the transaction details available via specified underwriters.

Positive

• Anticipated use of future cash proceeds for acquisitions and developments.
• Engagement of reputable underwriters (BofA Securities, Citigroup) enhances credibility.

Negative

• No immediate proceeds from the stock sale may limit immediate financial flexibility.
• The forward sale may lead to shareholder dilution if additional shares are issued.

NEW YORK--(BUSINESS WIRE)-- VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), an experiential asset real estate investment trust, today announced it has commenced an underwritten public offering of 16,500,000 shares of its common stock, all of which are expected to be offered on a forward basis through the forward purchasers or their respective affiliates in connection with the forward sale agreements described below. The underwriters of the offering also expect to be granted a 30-day option to purchase up to 2,475,000 additional shares of the Company’s common stock.

BofA Securities and Citigroup will serve as underwriters for the offering. The underwriters may offer the shares of common stock from time to time for sale in one or more transactions on the NYSE, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

The Company expects to enter into separate forward sale agreements with each of BofA Securities and Citibank, N.A. (or their respective affiliates) (the “forward purchasers”) with respect to the shares of common stock covered by the offering. In connection with the forward sale agreements, the forward purchasers or their respective affiliates are expected to borrow and sell to the underwriters all of the shares of common stock that will be delivered in the offering.

Subject to its right to elect cash or net share settlement under certain conditions, the Company intends to deliver, upon full physical settlement of the forward sale agreements on one or more dates specified by the Company occurring no later than approximately twelve months following the date of the prospectus supplement relating to the offering, an aggregate of 16,500,000 shares of common stock to the forward purchasers (or 18,975,000 shares of common stock if the underwriters exercise their option to purchase additional shares in full) in exchange for cash proceeds per share equal to the applicable forward sale price under the forward sale agreements.

The Company will not initially receive any proceeds from the sale of shares of common stock by the forward purchasers or their respective affiliates. The Company expects to use any cash proceeds that it receives upon the future settlement of the forward sale agreements in connection with or in furtherance of the ongoing business and operations of the Company, including funding the Company’s pipeline for the acquisition, development and improvement of properties, origination and funding of loans directly or indirectly secured by real estate, and other general corporate purposes, which may include capital expenditures, working capital and the repayment or refinancing of indebtedness.

The offering is being made pursuant to an effective shelf registration statement and will be made only by means of a preliminary prospectus supplement and a related prospectus relating to such offering and the accompanying base prospectus, a copy of which may be obtained from: BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte NC 28255-0001 (email: dg.prospectus_requests@bofa.com); Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (800) 831-9146.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to 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’ national, geographically diverse portfolio consists of 43 market-leading properties comprising over 122 million square feet and features approximately 58,700 hotel rooms and more than 450 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos, Inc., the Eastern Band of Cherokee Indians, Hard Rock International Inc., JACK Entertainment LLC, MGM Resorts International, Penn Entertainment, Inc., and The Venetian Las Vegas. The Company has a growing array of investing and financing partnerships with leading non-gaming experiential operators, including Great Wolf Resorts, Cabot, Canyon Ranch and Chelsea Piers. VICI Properties also owns four championship golf courses and 34 acres of undeveloped or underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create the nation’s highest quality and most productive experiential real estate portfolio.

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,” 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 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 (including those stemming from the COVID-19 pandemic and changes in the economic conditions as a result thereof and risks relating to the Company’s pending transactions) are detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does 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/20221103006282/en/

Investors:

Investors@viciproperties.com

(646) 949-4631

Or

David Kieske

EVP, Chief Financial Officer

DKieske@viciproperties.com

Danny Valoy

Vice President, Acquisitions & Finance

DValoy@viciproperties.com

Source: VICI Properties Inc.

FAQ

What is the purpose of VICI Properties' public offering?

VICI Properties aims to use future cash proceeds from the offering for property acquisitions, developments, and other corporate purposes.

How many shares is VICI Properties offering?

VICI Properties is offering 16,500,000 shares, with an option for underwriters to purchase an additional 2,475,000 shares.

Who are the underwriters for VICI Properties' offering?

BofA Securities and Citigroup are serving as underwriters for the public offering.

What does the forward sale agreement entail for VICI Properties?

Under the forward sale agreements, shares will be borrowed and sold to underwriters, with delivery to occur within approximately twelve months.

Will VICI Properties receive proceeds immediately from the public offering?

No, VICI Properties will not receive immediate proceeds from the sale of shares by the forward purchasers.