January 13, 2023 · Financial Gaming Business Las Vegas

VICI Properties Slides on News of Secondary Offering Worth up to $927.36M

Shares of VICI Properties (NYSE: VICI) slipped tardily Th after the casino existent land investment trustfulness (REIT) proclaimed a secondary portion sales agreement that could live worth as much as $927.36 million.

The Caesars Palace possessor said it is selling 24 million shares of its usual buy in and underwriters hold a 30-day window inwards which they can purchase upwards to an additional 3.6 billion shares. VICI is pricing the offering inward a reach of $32.60 to $33.60, beneath today’s closing cost of $34.02. Based on the maximum figure of shares that could be sold at $33.60 apiece, the secondary sales event could generate proceeds of $927.36 million.

The Company expects to participate into divide forward cut-rate sale agreements with each of John Pierpont Morgan Stanley, BofA Securities, Citibank, N.A. and J.P. Lewis Henry Morgan with regard to the shares of usual stockpile covered by the offering,” according to a statement.

That foursome of investment funds banks are serving as spliff book-running managers for the offering.

VICI Using John Cash for Recent Deals

VICI won’t live direct receiving proceeds from the secondary portion out sale. Rather, the New York-based REIT will employ the capital letter raised “in connection with or inwards furtherance of the on-going business organisation and operations of the Company, including funding the Company’s line for the acquisition, developing and melioration of properties, origination and funding of loans directly or indirectly secured past tangible estate, and other general incorporated purposes, which may include uppercase expenditures, workings upper-case letter and the quittance or refinancing of indebtedness,” it said inwards the statement.

The Mandalay Bay is ane of the to the highest degree acquisitive companies inwards the tangible acres sector — gaming or otherwise. Last week, it announced it is paying $200.8 million for the prop assets of quartet casinos operated past Pure Canadian Gaming Corporation. That marks VICI’s initial entry into Canada.

It also completed its purchases of the 49.9% of the Mandalay Bay and MGM Grand on the Las Vegas Strip it didn’t previously own.

In addition to being the largest experiential REIT inward the US, VICI is the largest landlord on the Strip, owning the prop assets of Caesars, Mandalay Bay, MGM Grand and the Venetian, among other integrated resorts.

VICI Not Shy About Secondary Offerings

VICI has a account of using secondary offerings to monetary fund and should the deal announced today run into the maximum number of shares sold, the REIT testament feature 1.024 1000000000 shares outstanding, upward from 997.37 entering today.

While the issuance of young shares is dilutive to electric current investors, VICI rewarded shareholders in conclusion yr as the stock up soundly outperformed the broader market and the real demesne sector at large.

It remains to be seen if VICI is alive(p) in 2023 as it was inward 2022, but the endure month of transactions sets the represent for to a greater extent deal-making by the gaming REIT. In December, VICI proclaimed the purchase of the prop assets of the Fitz Casino & Hotel in Tunica, Miss., and the WaterView Casino & Hotel in Vicksburg, Miss. as comfortably as funding for the Fountainbleu on the Strip.

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