VICI Properties Secures Significant $2.5 Billion Credit Facility
VICI Properties Announces New Credit Facility
In a significant move, VICI Properties Inc. (NYSE: VICI) has successfully established a new $2.5 billion multicurrency unsecured revolving credit facility, ensuring the company’s financial flexibility and operational capacity. This facility replaces its previous unsecured revolving credit facility of the same magnitude, showcasing strong market confidence as it was greatly oversubscribed with robust backing from 15 financial institutions.
Details of the Credit Facility
The new Revolving Credit Facility features a maturity date set for February 3, 2029. Notably, it allows for extensions for up to two successive six-month terms or a single twelve-month term. As per the company’s current credit ratings and leverage ratios, the interest rate stands at 85.0 basis points above the SOFR rate for standard currency borrowings and the equivalent index rate for foreign currency transactions. Moreover, it entails a facility fee of 20.0 basis points based on total commitments, allowing the company an option to enhance this facility by an additional $1.0 billion should lenders agree to these terms.
Leadership Perspective
David Kieske, Executive Vice President and CFO of VICI Properties, expressed gratitude towards the capital support provided by the bank group, indicating their continued confidence in the company’s strategic direction. He emphasized that this new facility greatly fortifies the company’s liquidity and financing options, enabling VICI to leverage potential investment opportunities effectively.
Financial Partnerships
The successful establishment of the credit facility was facilitated by Wells Fargo Securities, LLC. and JPMorgan Chase Bank, N.A., who acted as the Joint Bookrunners. Additionally, Wells Fargo Bank, N.A. served as the Administrative Agent, while BofA Securities, Inc. and Citibank, N.A. joined the deal as Syndication Agents. Other notable financial players like Barclays Bank PLC, Goldman Sachs Bank USA, and several others contributed as Joint Lead Arrangers, demonstrating a collaborative effort in creating this substantial financial resource.
About VICI Properties
VICI Properties Inc. stands as a robust entity within the S&P 500, notable for its expansive portfolio of premier gaming, hospitality, wellness, and entertainment properties. Boasting iconic destinations such as Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas, VICI Properties curates a diverse array of experiential assets across the United States and Canada. The company proudly manages 93 properties, incorporating 54 gaming locations and 39 experiential entities, stretching across approximately 127 million square feet. The portfolio is home to around 60,300 hotel rooms and a vibrant mixture of over 500 restaurants, bars, nightclubs, and sportsbooks, primarily under long-term, triple-net lease agreements.
Strategic Partnerships in Experiential Real Estate
In addition to its extensive gaming and hospitality portfolio, VICI Properties has been fostering various real estate and financing partnerships with leading operators across multiple experiential sectors. Esteemed brands like Cabot, Canyon Ranch, Great Wolf Resorts, and Kalahari Resorts form part of its growing collaborative network. Furthermore, VICI Properties owns four championship golf courses and substantial undeveloped land parcels adjacent to the Las Vegas Strip, enabling continued growth and innovation in their business model.
Frequently Asked Questions
What is the purpose of VICI Properties' new credit facility?
The new $2.5 billion unsecured credit facility is aimed at enhancing VICI Properties’ liquidity and providing financial flexibility for strategic investment opportunities.
Who were the key financial institutions involved in the credit facility?
Wells Fargo Securities, LLC. and JPMorgan Chase Bank, N.A. acted as the Joint Bookrunners, supported by several other institutions as Syndication Agents and Joint Lead Arrangers.
How does this credit facility affect VICI Properties’ operations?
This credit facility solidifies VICI Properties’ financial foundation, allowing them to capitalize on potential investment opportunities and maintain a strong balance sheet.
What are the main properties owned by VICI Properties?
VICI Properties owns notable properties such as Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort, among 93 other experiential assets across North America.
What is VICI Properties' business strategy?
The company focuses on creating a top-tier experiential real estate portfolio by partnering with quality operators and placing a strong emphasis on sustainable growth and development.
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