File photo: MGM Grand Las Vegas sign in 2013. Photo: Tuxyso / Wikimedia Commons / CC BY-SA 3.0. Cropped.
VICI Properties has borrowed $500 million to help refinance debt coming due in February 2027, while also securing slightly cheaper pricing on its revolving credit line.
The real estate investment trust said Nov. 12 that its subsidiary, VICI Properties L.P., drew the full amount at closing. The new unsecured term loan matures on Jan. 31, 2032.
VICI owns casino, hotel and other leisure real estate, including MGM Grand, Caesars Palace and the Venetian Resort in Las Vegas. The borrowing is a company-level refinancing, not a newly announced purchase of one of those properties.
Replacing part of an approaching debt bill
The proceeds will help redeem and refinance part of VICI’s 5.75% senior unsecured notes due in February 2027. VICI did not describe the new loan as paying off that entire bond issue.
The loan initially carries a floating interest rate of SOFR plus 90 basis points, or 0.90 percentage point. SOFR is a benchmark used to price many business loans.
VICI also entered into interest-rate swaps covering the full $500 million. Including those agreements, the company said its effective all-in fixed rate is about 5.20%. The loan’s stated floating rate and the 5.20% figure describe different parts of the same financing, not two separate loans.
The agreement’s pricing is tied to VICI L.P.’s credit ratings and can improve further if its leverage ratio falls to or below a specified threshold, the company said.
Credit line keeps the same size
VICI also amended its existing $2.5 billion unsecured revolving credit facility. Based on the same ratings-linked pricing grid, its interest-rate spread fell from SOFR plus 85 basis points to SOFR plus 80 basis points.
That is a reduction of five basis points, or 0.05 percentage point. The company said the amendment did not change the credit line’s size or maturity. It did not announce a new $2.5 billion borrowing under that facility.
Chief Financial Officer David Kieske said the term loan diversifies VICI’s funding sources and addresses a meaningful portion of its February 2027 maturity.
Wells Fargo Securities was the loan’s sole bookrunner, and Wells Fargo Bank was the administrative agent. Mizuho Bank, Sumitomo Mitsui Banking Corporation and Truist Securities joined Wells Fargo Securities as lead arrangers.
JBizNews Desk | New York
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