VICI eyes $4B bridge loan for Venetian real estate acquisition

VICI Properties Inc. disclosed that on March 2 the company entered into a commitment letter with Deutsche Bank and Morgan Stanley providing a $4 billion, 364-day first-lien secured bridge loan facility in connection with the company's planned $4 billion acquisition of all the land and real estate assets associated with the Venetian Resort Las Vegas and the Sands Expo and Convention Center, located in Las Vegas.

According to the commitment letter, pricing on the bridge loan opens at L+200 and increases 25 basis points every 90 days, reaching a cap of L+275. The bridge loan also includes a duration fee of 50 bps that is payable 90 days after closing, with an additional 75 bps payable after 180 days and a further 100 bps payable at 270 days.

VICI plans to incur long-term debt financing and/or use borrowings under its existing revolver to help back the acquisition.

In January 2020, VICI repriced its then $2.1 billion term loan B (L+175, 0% Libor floor). At the same time, the company also completed a three-part bond offering to redeem the outstanding PropCo notes in full and to fund the completion of the proposed merger of Eldorado Resorts and Caesars Entertainment.

VICI Properties is a real estate investment trust and one of the country's largest owners of gaming, hospitality and entertainment destinations. The company is rated BB by S&P Global Ratings and Fitch Ratings.