VICI Qualities Extends Note Trade Deadline For MGP Buyers

Posted on: April 14, 2022, 02:55h. 

Previous up to date on: April 14, 2022, 03:47h.

Casino landlord VICI Houses (NYSE:VICI) is extending the deadline for MGM Expansion Houses (NYSE:MGP) traders to trade notes in that firm for similar instruments issued by the Caesars Palace owner.

The exchange is tied to VICI’s $17.2 billion all-stock acquisition of its rival, which was introduced last August. Under the conditions of the transaction, VICI assumes $5.7 billion in MGP credit card debt and gets MGM Resorts International’s (NYSE:MGM) $4.4 billion stake in the serious estate investment belief (REIT) it spun off in 2016.

VICI is supplying MGP shareholders additional time to exchange “up to an aggregate principal sum of $4.20 billion” for new notes issued by the buyer.

The VICI Issuers hereby extend these kinds of expiration date from 5:00 p.m., New York Metropolis time, on April 14, 2022 to 5:00 p.m., New York City time, on April 28, 2022,” claimed the REIT in a statement.

MGP investors will acquire 1.366 shares of freshly issued VICI fairness for every share of MGP they at this time have.

Marriage Building Strip Goliath

VICI’s acquisition of its rival results in the dominant proprietor of Las Vegas Strip gaming real estate.

The obtain was at first scheduled to near in the very first half of this yr. Even though it remains on track to cross the complete line, VICI adds it will extend notice exchange deadlines if essential.

“To the extent the consummation of the Mergers is not expected to occur on or just before the then-predicted Settlement Day, for any motive, the VICI Issuers anticipate continuing to extend the Expiration Date right up until this sort of time that the Mergers may perhaps be consummated on or before the Settlement Date. The VICI Issuers will provide detect of any these types of extension in progress of the Expiration Date,” claimed the company in the statement.

VICI Dedicated to Acquiring Deal Done

It should really be mentioned that in the months following announcement of the invest in of MGP, the marriage has not appeared to be in jeopardy. Rather, VICI is exhibiting motivation and flexibility by extending the notes trade deadline.

VICI issued a enormous total of new equity to, in part, fund the acquisition. That diluted present investors. But that could ultimately show to be a circumstance of around-time period soreness, prolonged term attain, simply because the deal transforms the buyer.

Over-all, VICI is adding 15 gaming venues to its roster and pretty much $1.01 billion in annualized rent. When the transaction closes, Las Vegas will generate 45% of VICI’s hire foundation.