VICI Properties obtains $3.5B pro rata credit facility

VICI Properties Inc. disclosed that on Feb. 8 the company entered into a credit agreement that includes a $1 billion unsecured delayed-draw term loan due March 2025 and a $2.5 billion senior unsecured revolver due March 2026.

The credit facility was substantially oversubscribed, with strong support from 17 new and incumbent financial institutions, according to a statement. In connection with the transaction, the company terminated its existing $1 billion undrawn secured revolving credit facility.

Pricing on the facility is tied to a ratings-based grid and benchmarked to the secured overnight financing rate, or Sofr, at Sofr+85-160 on the term loan, opening at Sofr+160, and at Sofr+77.5-132.5 on the revolver, opening at Sofr+132.5. Pricing includes a 1% floor.

J.P. Morgan, Wells Fargo, BofA Securities and Citi acted as joint lead arrangers. J.P. Morgan and Wells Fargo acted as joint bookrunners. J.P. Morgan is the administrative agent.

The delayed-draw term loan is available to be drawn up to 12 months, with proceeds from the term loan and revolver earmarked for general corporate purposes, including financing working capital needs, repayment of permitted debt, acquisitions and other investments.

The facility is covered by total leverage, secured leverage, unsecured leverage, fixed charge coverage and unsecured interest coverage covenants.

In August 2021, VICI secured a $9.3 billion financing commitment from Morgan Stanley, J.P. Morgan and Citi in connection with its planned $17.2 billion acquisition of MGM Growth Properties. The acquisition is expected to close in the first half of 2022 and includes the assumption of about $5.7 billion of debt.

VICI Properties is a real estate investment trust and one of the country's largest owners of gaming, hospitality and entertainment destinations. Corporate issuer ratings are BB/Ba3/BB.

Article amended at 4:50 p.m. ET on Thursday, Feb. 10, to reflect the correct pricing structure for the credit facility.