VICI Properties Boosts Borrowing Capabilities With $3.5B Credit Facility, Term Loan
VICI Properties (NYSE:VICI), the largest gambling casino landlord, is expanding its adoption mental ability inwards a substantial fashion. The accompany now has access code to a new, undrawn combined $3.5 billion unsecured credit entry facility and a full term loan.
The gaming existent estate investiture trustingness (REIT) made the declaration Tuesday after the fill up of US markets. It noted its new adoption power consists of of a four-year, $2.5 1000000000000 senior unsecured revolving credit entry facility, and a three-year, $1 one thousand million unsecured delayed take out full term loan. There was unsubtle interestingness from creditors in providing the tangible acres company with more adoption capacity.
The Credit Facilities were substantially oversubscribed, with strong reenforcement from 17 young and officeholder financial institutions,” according to a statement issued by New York-based VICI.
J.P. Thomas Hunt Morgan Salmon Portland Chase Bank, N.A., Wells Fargo Securities, LLC., BofA Securities, Inc. and Citibank, N.A. acted as articulation lead arrangers on the credit facilities.
Why It’s Important for VICI
More borrowing ammunition is relevant for VICI because commercial existent estate, including gaming, is a capital-intensive business.
For example, the accompany is getting competitor MGM Growth Properties (NYSE:MGP) for $17.2 1000000000000 inwards equity. And lastly year, it agreed to pay $4 billion for the holding assets of the Venetian, Palazzo and Venetian Expo inwards Las Vegas.
The young deferred payment facilities could live used to assist VICI purchase additional properties without having to military issue more caudex or corporate bonds. But the troupe hasn’t confirmed it will follow to a greater extent deals with the expanded borrowing capacity.
The new credit capabilities do another intention for the Caesars Palace owner. VICI “terminated its existing $1 1000000000000 undrawn secured revolving deferred payment facility, and all liens securing the company’s existing course credit facilities and related to subsidiary guarantees were automatically released” and all of its borrowings are now unsecured.
“This new unsecured revolving credit entry facility and delayed pull term loan significantly bolsters our equilibrium mainsheet mental ability and enhances our financial flexibleness as we defend our commitment to stay fresh leverage 'tween 5.0x and 5.5x on a mesh debt to earnings before interest, taxes, depreciation and amortization (EBITDA) basis,” said CFO David Kieske inwards the statement.
Credit Terms
VICI’s revolving credit entry installation matures on Mar 31, 2026 and put up live extended for deuce successive six-month terms, patch the delayed standoff term loan matures on Mar 31, 2025 and tin follow extended for 2 sequent 12-month terms.
VICI has the option to increment both the credit entry installation and the term loan by up to $1 billion. Interest rates on both sources of uppercase are dictated by the REIT’s credit entry ratings.
Currently, VICI owns the dimension assets of 27 casinos and its tenants include Caesars Entertainment, Century Casinos, Penn National Gaming, and multiple tribal operators, among others.