By Wendy Van Sickle
Columbus, Ohio, April 20 – VICI Properties LP priced an upsized $5 billion of senior notes in five tranches (Ba1/BBB-/BBB-) on Wednesday, according to a news release.
The issue size had previously been talked at $4.4 billion.
The notes included:
• $500 million of 4.375% senior notes due May 15, 2025 that will be issued at 99.955;
• $1.25 billion of 4.75% senior notes due Feb. 15, 2028 that will be issued at 99.932;
• $1 billion of 4.95% senior notes due Feb. 15, 2030 that will be issued at 99.771;
• $1.5 billion of 5.125% senior notes due May 15, 2032 that will be issued at 99.779; and
• $750 million of 5.625% senior notes due May 15, 2052 to be issued at 99.379.
As previously reported, the notes will have make-whole calls and then par calls.
Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, Wells Fargo Securities, BofA Securities, Barclays, Citigroup and Citizens Capital Markets are the bookrunners.
Proceeds will be used to fund the approximately $4.4 billion consideration for the redemption of a majority of the VICI Properties OP LLC units to be received by MGM Resorts International in connection with the closing of the MGP acquisition and to repay substantially all of the $600 million outstanding under VICI’s revolving credit facility, which was drawn on Feb. 18. Any remaining net proceeds will be used for general corporate purposes, which may include the acquisition and improvement of properties, capital expenditures, working capital, the repayment of debt, and other general business purposes.
S&P Global Ratings and Fitch Ratings both lifted VICI into the investment-grade tier this week, accounting for the current split rating on the deal.
VICI Properties Inc. is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations. The issuer is a wholly owned subsidiary.
| Issuer: | VICI Properties LP
|
| Issue: | Senior notes
|
| Amount: | $5 billion
|
| Bookrunners: | Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, Wells Fargo Securities, BofA Securities, Barclays, Citigroup and Citizens Capital Markets
|
| Senior co-managers: | Capital One Securities and Truist Securities
|
| Co-managers: | BNP Paribas, Raymond James, Scotiabank, SMBC Nikko, Stifel and UBS Investment Bank
|
| Trustee: | UMB Bank, NA
|
| Issuer’s counsel: | Hogan Lovells US LLP
|
| Underwriters’ counsel: | Sidley Austin LLP
|
| Pricing date: | April 20
|
| Settlement date: | April 29
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
|
|
| 2025 notes
|
| Amount: | $500 million
|
| Maturity date: | May 15, 2025
|
| Coupon: | 4.375%
|
| Price: | 99.955
|
|
|
| 2028 notes
|
| Amount: | $1.25 billion
|
| Maturity date: | Feb. 15, 2028
|
| Coupon: | 4.75%
|
| Price: | 99.932
|
|
|
| 2030 notes
|
| Amount: | $1 billion
|
| Maturity date: | Feb. 15, 2030
|
| Coupon: | 4.95%
|
| Price: | 99.771
|
|
|
| 2032 notes
|
| Amount: | $1.5 billion
|
| Maturity date: | May 15, 2032
|
| Coupon: | 5.125%
|
| Price: | 99.779
|
|
|
| 2052 notes
|
| Amount: | $750 million
|
| Maturity date: | May 15, 2052
|
| Coupon: | 5.625%
|
| Price: | 99.379
|
|
|
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