By Paul A. Harris
Portland, Ore., Nov. 21– VICI Properties Inc. priced an upsized $2.25 billion of senior notes (B1/BB) in two tranches on Thursday, according to market sources.
The deal included $1.25 billion of seven-year notes, which priced at par to yield 4¼%. The yield printed in the middle of yield talk in the 4¼% area and in line with early guidance in the low-to-mid 4% area.
It also included $1 billion tranche of 10-year notes, which priced at par to yield 4 5/8%, at the tight end of yield talk in the 4¾% area and early guidance in the high 4% area.
The overall amount of issuance increased from $1.75 billion.
Lead bookrunner Deutsche Bank Securities Inc. will bill and deliver. Morgan Stanley & Co. LLC was also a lead bookrunner. Other bookrunners were BofA Securities Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Citizens Capital Markets Inc. and Wells Fargo Securities LLC.
The New York real estate investment trust plans to use the proceeds to refinance a $1.55 billion asset-level real estate mortgage financing secured by the real estate assets associated with Caesars Palace Las Vegas.
The notes were sold via VICI Properties LP and VICI Note Co. Inc.
VICI Properties owns a portfolio of gaming, hospitality and entertainment destinations, including Caesars Palace.
| Issuers: | VICI Properties LP and VICI Note Co. Inc.
|
| Amount: | $2.25 billion
|
| Securities: | Senior notes
|
| Lead bookrunners: | Deutsche Bank Securities Inc. (bill and deliver) and Morgan Stanley & Co. LLC
|
| Other bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Citizens Capital Markets Inc. and Wells Fargo Securities LLC
|
| Trade date: | Nov. 21
|
| Settlement date: | Nov. 26
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 1, 2026
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 256 bps
|
| Call protection: | Three years
|
| Price talk: | 4¼% area
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | Dec. 1, 2029
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 386 bps
|
| Call protection: | Five years
|
| Price talk: | 4¾% area
|
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