VICI Properties prices $1.3 billion senior notes offering

Published 26/03/2025, 21:34
VICI Properties prices $1.3 billion senior notes offering

NEW YORK - VICI Properties Inc. (NYSE: VICI), an S&P 500 experiential real estate investment trust, has announced the pricing of a $1.3 billion public offering of senior unsecured notes by its subsidiary, VICI Properties L.P. The offering consists of $400 million of 4.750% senior unsecured notes due 2028 and $900 million of 5.625% senior unsecured notes due 2035.

The 2028 Notes, issued at 99.729% of par, and the 2035 Notes, issued at 99.219% of par, are set to mature on April 1 of their respective years. Interest on these notes is payable semi-annually, starting October 1, 2025. The closing of the offering is anticipated on April 7, 2025, contingent on customary closing conditions. With a strong gross profit margin of 99.18% and revenue growth of 6.53% over the last twelve months, VICI has demonstrated impressive operational efficiency. InvestingPro subscribers can access 8 additional key financial metrics and insights about VICI’s debt management strategy.

VICI Properties L.P. intends to employ the net proceeds to repay existing indebtedness, including $500.0 million of 4.375% senior notes due 2025, $799.4 million of 4.625% senior exchange notes due 2025, and $0.6 million of 4.625% senior notes due 2025. Any remaining funds will be directed toward general corporate purposes, which may encompass property acquisitions and improvements, capital expenditures, working capital, and debt refinancing.

A consortium of financial institutions is managing the offering, with Wells Fargo Securities, J.P. Morgan Securities, Barclays Capital, Citigroup Global Markets, BofA Securities, Goldman Sachs, Mizuho Securities USA, SMBC Nikko Securities America, and Truist Securities as joint book-running managers. Additional senior and regular co-managers are also participating in the offering.

The offering is made through an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) and is available via a prospectus and prospectus supplement, which can be obtained from the managing financial institutions.

VICI Properties owns a vast portfolio of gaming, hospitality, and entertainment properties, including prominent Las Vegas landmarks such as Caesars Palace, MGM Grand, and the Venetian Resort. The company’s portfolio comprises 93 assets, featuring around 127 million square feet, over 60,300 hotel rooms, and numerous restaurants, bars, and entertainment venues. The trust also owns championship golf courses and undeveloped land near the Las Vegas Strip. Trading at a P/E ratio of 12.41x and offering a dividend yield of 5.47%, VICI has consistently raised its dividend for 7 consecutive years. For detailed valuation analysis and comprehensive insights, access VICI’s full research report on InvestingPro, where you’ll find expert analysis of this prominent player in the Specialized REITs industry.

This article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the mentioned securities.

In other recent news, VICI Properties Inc. reported mixed financial results for the fourth quarter of 2024. The company’s earnings per share (EPS) fell short of expectations at $0.58, compared to the forecasted $0.68. However, VICI Properties exceeded revenue expectations, reporting $976.1 million against a projected $968 million. Additionally, the company achieved an investment-grade credit rating, indicating enhanced financial stability. In a strategic move, VICI Properties announced a loan investment in One Beverly Hills, reflecting its focus on partnerships with top experiential operators. Analysts at Citizens JMP have maintained a Market Outperform rating for VICI Properties, with a price target of $35.00. The firm’s strategic investment practices and growth forecasts are viewed positively by analysts. VICI Properties projects a 3.3% year-over-year growth in AFFO per share for 2025, ranging between $2.32 and $2.35.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.