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NEW YORK - VICI Properties Inc. (NYSE: NYSE:VICI), a notable real estate investment trust with a market capitalization of $31.4 billion and an impressive track record of raising dividends for seven consecutive years, has announced the establishment of a new $2.5 billion multicurrency unsecured revolving credit facility. This new financial arrangement, which matures on February 3, 2029, replaces the company’s previous credit facility of the same size and has garnered substantial support from a consortium of 15 financial institutions.
The facility, which was reportedly oversubscribed, offers VICI Properties the option to extend its maturity for additional six-month periods or a single twelve-month term. The interest rate is set at 85.0 basis points above the SOFR rate, or the equivalent index rate for foreign currency borrowings, contingent on the company’s current credit ratings and leverage ratios. Additionally, the company is obligated to pay a facility fee of 20.0 basis points on the total commitments.
David Kieske, Executive Vice President and CFO of VICI Properties, expressed gratitude for the sustained support from the banking group and their confidence in the company’s business model. He highlighted that the new credit facility reinforces the company’s liquidity and financing flexibility, which is integral for capitalizing on potential investment opportunities. According to InvestingPro data, VICI maintains a robust current ratio of 15.87, indicating exceptional liquidity with assets well exceeding short-term obligations.
The syndicate of financial institutions supporting this credit facility includes Wells Fargo (NYSE:WFC) Securities, LLC and JPMorgan Chase (NYSE:JPM) Bank, N.A. as Joint Bookrunners, with Wells Fargo Bank, N.A. serving as the Administrative Agent. Other key participants were BofA Securities, Inc., Citibank, N.A., and JPMorgan Chase Bank, N.A. as Syndication Agents, among several others fulfilling roles as Documentation Agents and Joint Lead Arrangers.
VICI Properties boasts a portfolio of leading gaming, hospitality, and entertainment venues, including prominent Las Vegas Strip properties such as Caesars (NASDAQ:CZR) Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. The company’s portfolio spans across the United States and Canada, featuring a diverse collection of 93 experiential assets. With a healthy dividend yield of 5.81% and trading at an attractive P/E ratio of 11.04, VICI currently appears undervalued according to InvestingPro analysis. Discover more insights and 6 additional ProTips about VICI Properties in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
This move is part of VICI Properties’ strategy to maintain a high-quality and productive real estate portfolio, partnering with top-tier operators in various experiential sectors. The company’s forward-looking statements in the press release reflect its ambition to grow and adapt in an ever-evolving market landscape, while cautioning investors about the inherent risks and uncertainties of such statements. The information provided is based on a press release statement.
In other recent news, VICI Properties Inc. has been the subject of significant analyst attention and financial activity. JMP Securities maintained a Market Outperform rating on VICI Properties, with a price target of $35. The firm acknowledged the company’s strategic shift towards financing transactions, which is seen as a response to current market conditions and the performance of casino operators. In addition, Barclays (LON:BARC) initiated coverage on VICI Properties, assigning an Overweight rating and setting a price target of $36, citing the company’s asset quality, geographic distribution, and economic productivity as reasons for a higher valuation.
In financial news, VICI Properties L.P., a subsidiary of VICI Properties Inc., recently completed the offering of $750 million in senior unsecured notes with a 5.125% interest rate, which will mature on November 15, 2031. The proceeds from this offering are earmarked to redeem the existing 3.500% senior notes due February 15, 2025. This move is seen as a strategic action to manage VICI LP’s debt profile by replacing older notes with new ones under different terms.
These recent developments underscore the active strategies VICI Properties is employing to navigate the current market environment and position itself for future growth. The company’s proactive approach, as well as its solid lease income, have been highlighted by analysts from JMP Securities and Barclays, indicating a positive outlook for the company’s future performance.
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