VICI Properties (NYSE:VICI) announced today it’s marketing $5 1000000000000 worth of senior unsecured notes with the bulk of those proceeds going to a notes interchange with MGM Growth Properties (NYSE:MGP), which the former is inward the treat of acquiring.
The Caesars Palace possessor is merchandising $1.5 one thousand million worth of 5.125% senior unsecured notes due 2032, $1 billion inward 4.950% senior unsecured long notes due 2030, $1.25 1000000000 aggregate principal sum amount of 4.750% senior unsecured long notes due 2028, $750.0 trillion aggregative school principal amount of 5.625% senior unsecured notes due 2052 and $500 zillion inward 4.375% senior unsecured notes due 2025.
The issuer intends to apply the net proceeds from the offering to fund the close to $4.4 1000000000000 considerateness for the redemption of a absolute majority of the VICI Properties OP LLC units to be received by MGM Resorts International inwards link with the closing of the MGP acquisition,” according to a financial statement issued by the cassino landlord.
The gaming real land investment funds trust (REIT) adds that the remaining $600 trillion testament live directed to repaying “substantially all” of that amount that it drew cut down on a revolving course credit facility to monetary fund its purchase of the dimension assets of the Venetian, Palazzo and Venetian Expo. That dealing was completed earlier this year.
Next Step in MGP Marriage
Last August, VICI announced the $17.2 1000000000000 all-stock acquisition of MGP. That business deal testament make the largest gambling casino landlord on the Las Vegas Strip.
Last week, the suitor said it’s extending a deadline for MGP investors to exchange notes inward that companionship for similar securities in VICI. The deadline was moved to Apr 28 from Apr 14. The $5 1000000000000 notes sale announced today is scheduled to tightlipped on Apr 29.
“Interest on the 2025 Notes, the 2032 Notes and the 2052 Notes is payable inwards hard cash inward arrears on May 15 and Nov 15 of apiece year, showtime on Nov 15, 2022. Interest on the 2028 Notes and the 2030 Notes is payable inwards hard cash inwards arrears on February 15 and Aug 15 of apiece year, start on Aug 15, 2022,” adds VICI.
The REIT also said any capital remaining followers the notes change and quittance of the credit six-gun testament be used for general collective purposes, potentially including acquisitions.
VICI Credit Profile
Owing to the fact that the notes sales event was proclaimed simply hours ago, deferred payment ratings agencies haven’t yet chimed inwards on the transaction. On Monday, Fitch Ratings lifted its grade on VICI to “BBB-“ from “BB” with a “positive” outlook.
“Fitch expects VICI testament melt off clear purchase to 5.5x within 24 months of the dealing closure from an estimated pro forma 5.7x at closing,” said the research firm. “Fitch views the merger to follow strategically auditory sensation inwards that it alleviates some considerations that were antecedently restraining the two companies’ standalone credit profiles such as tenant and plus diversification.”
By path of the MGP purchase, VICI is adding 15 gaming properties to its portfolio and nearly $1.01 one million million in yearly rent.