Vici Properties adds $500m term loan to existing credit agreement

Vici Properties has closed on an amendment to its existing credit agreement to help refinance senior unsecured notes which are due in February 2027, including the addition of a new $500m term loan. 

Once the loan officially closed, Vici drew the full $500m amount to partially redeem the 5.75% notes, as well as entered into swap agreements for an effective all-fixed rate of approximately 5.2%. 

The term loan is set to mature on January 31, 2032, and includes a pricing improvement when, or if, Vici’s total leverage ratio is at or below a defined threshold. 

Vici also amended its existing $2.5bn unsecured revolving credit facility to “effectively lower the interest applicable,” although the revision “did not change the size or maturity of the revolving credit facility.”

“We are very pleased to close this Term Loan, which diversifies our funding sources and addresses a meaningful portion of our February 2027 maturity at an attractive fixed cost and extends our debt maturity profile,” Vici EVP and CFO David Kieske said. 

“We greatly appreciate the continued support and confidence of our bank group, and the improved pricing on our Revolving Credit Facility reflects the strength of our investment grade balance sheet.”

In June, Vici completed its acquisition of the real estate assets for Deerfoot Inn & Casino, Great Northern Casino and two limited-service hotels which are adjacent to the Great Northern Casino for $144.4m.

In a connected transaction, Indigenous Gaming Partners announced the acquisition of Gamehost through Pure Casino Entertainment, which amended its triple-net master lease agreement with Vici to add the new portfolio. 

The agreement between Indigenous Gaming Partners and Pure Casino Entertainment was originally unveiled on March 30 and includes the acquisition of all remaining common shares in Gamehost for $13.65 per share in cash.

Vici’s annual rent with Pure Casino Entertainment increased $11.6m as a result of the new acquisitions, while both parties adjusted the lease’s term to include a full 25-year initial base with four five-year renewal options.