VICI plans $200 million of debt financing for Greektown purchase

By Sara Rosenberg

New York, Nov. 14 – VICI Properties Inc. plans on getting about $200 million of long-term debt financing to help fund its acquisition of the Greektown Casino-Hotel in Detroit, according to a 424B3 filed with the Securities and Exchange Commission on Wednesday.

The financing may take the form of senior secured term loans and/or capital markets debt.

If the debt financing can’t be raised on favorable terms, the company would draw on its senior secured revolving credit facility to help fund the acquisition and raise new debt at a later date to repay those revolver borrowings.

Other funds for the transaction are expected to come from the sale of 25 million shares of common stock and cash on hand.

Under the agreement, Greektown is being bought by VICI and Penn National Gaming Inc. VICI will acquire the land and real estate assets of Greektown for about $700 million, and Penn National will acquire the operating assets of Greektown for around $300 million.

Closing is expected in mid-2019, subject to regulatory approvals and customary conditions.

Goldman Sachs & Co. LLC is acting as VICI’s financial adviser.

VICI is a New York-based real estate investment trust that owns a portfolio of gaming, hospitality and entertainment destinations.

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