VICI Promoting $5B In Notes To Comprehensive MGM Growth Obtain

Posted on: April 20, 2022, 04:58h. 

Last up-to-date on: April 20, 2022, 04:58h.

VICI Homes (NYSE:VICI) announced these days it’s marketing $5 billion well worth of senior unsecured notes with the bulk of these proceeds heading to a notes trade with MGM Development Houses (NYSE:MGP), which the previous is in the procedure of obtaining.

The Caesars Palace operator is promoting $1.5 billion value of 5.125% senior unsecured notes owing 2032, $1 billion in 4.950% senior unsecured prolonged notes due 2030, $1.25 billion combination principal amount of money of 4.750% senior unsecured lengthy notes owing 2028, $750. million mixture principal sum of 5.625% senior unsecured notes due 2052 and $500 million in 4.375% senior unsecured notes owing 2025.

The issuer intends to use the internet proceeds from the supplying to fund the around $4.4 billion consideration for the redemption of a bulk of the VICI Houses OP LLC units to be been given by MGM Resorts International in relationship with the closing of the MGP acquisition,” according to a assertion issued by the casino landlord.

The gaming genuine estate expenditure rely on (REIT) adds that the remaining $600 million will be directed to repaying “substantially all” of that volume that it drew down on a revolving credit history facility to fund its order of the property assets of the Venetian, Palazzo and Venetian Expo. That transaction was done earlier this calendar year.

Future Step in MGP Marriage

Final August, VICI introduced the $17.2 billion all-inventory acquisition of MGP. That offer will develop the greatest casino landlord on the Las Vegas Strip.

“Interest on the 2025 Notes, the 2032 Notes and the 2052 Notes is payable in cash in arrears on Might 15 and November 15 of each yr, commencing on November 15, 2022. Fascination on the 2028 Notes and the 2030 Notes is payable in money in arrears on February 15 and August 15 of just about every calendar year, starting on August 15, 2022,” provides VICI.

The REIT also reported any money remaining subsequent the notes trade and repayment of the credit score revolver will be made use of for typical company applications, potentially like acquisitions.

VICI Credit rating Profile

Owing to the point that the notes sale was declared just hrs back, credit score rankings companies haven’t however chimed in on the transaction. On Monday, Fitch Rankings lifted its grade on VICI to “BBB-“ from “BB” with a “positive” outlook.

“Fitch expects VICI will decrease net leverage to 5.5x in just 24 months of the transaction closing from an estimated pro forma 5.7x at closing,” claimed the investigate company. “Fitch views the merger to be strategically audio in that it alleviates some considerations that ended up formerly restraining the two companies’ standalone credit history profiles such as tenant and asset diversification.”

By way of the MGP obtain, VICI is incorporating 15 gaming properties to its portfolio and virtually $1.01 billion in yearly lease.