Published on 3/7/2024 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: VICI Properties prices $1.05 billion of notes in 10-, 30-year parts
By Wendy Van Sickle
Columbus, Ohio, March 7 – VICI Properties LP priced $1.05 billion of senior notes in two tranches (Ba1/BBB-/BBB-) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $550 million of 5.75% notes due April 1, 2034 at 99.186 to yield 5.858%, or a spread over Treasuries of 175 basis points.
The issuer sold $500 million of 6.125% notes due April 1, 2054 at 98.192 to yield 6.259%, or Treasuries plus 200 bps.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc. are the bookrunners.
Proceeds will be used by indirect parent VICI Properties Inc. to repay the company’s outstanding $1,024,200,000 in aggregate principal amount of the 5.625% senior exchange notes due 2024 and $25.8 million in aggregate principal amount of the 5.625% MGP OP notes due 2024. Both series of notes bear interest at 5.625% and mature on May 1, 2024. Any remaining net proceeds will be used for general corporate purposes, which may include property acquisition and improvement, capital expenditures, working capital and debt repayment or refinancing.
VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.
| Issuer: | VICI Properties LP
|
| Amount: | $1.05 billion
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| Issue: | Senior notes
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| Bookrunners: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc.
|
| Co-managers: | Capital One Securities, SMBC Nikko Securities America, Inc., Mizuho Securities USA LLC, KeyBanc Capital Markets Inc. and Raymond James & Associates, Inc.
|
| Trustee: | UMB Bank, NA
|
| Counsel to issuer: | Hogan Lovells US LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Pricing date: | March 7
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| Settlement date: | March 18
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| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
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| Fitch: BBB-
|
|
|
| 2034 notes
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| Amount: | $550 million
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| Maturity: | April 1, 2034
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| Coupon: | 5.75%
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| Price: | 99.186
|
| Yield: | 5.858%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Jan. 1, 2034, then a par call
|
| Cusip: | 925650AF0
|
|
|
| 2054 notes
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| Amount: | $500 million
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| Maturity: | April 1, 2054
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| Coupon: | 6.125%
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| Price: | 98.192
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| Yield: | 6.259%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Oct. 1, 2053, then a par call
|
| Cusip: | 925650AG8
|
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