VICI Properties, a real estate investment trust, entered into a new five-year $400 million senior secured revolving credit facility and a new seven-year $2.2 billion first lien senior secured term loan.
Borrowings under the credit facilities will bear interest initially at LIBOR plus 225 basis points. At the time of closing, there are expected to be $300 million of borrowings under the revolver.
“We continue to be pleased with the strong reception and support of VICI Properties in the capital markets and from our banking partners,” said Mary Beth Higgins, CFO of VICI Properties. “By capitalizing on attractive credit markets for our high quality real estate, we strengthened our balance sheet, lowered our cost of financing and are well positioned to continue to execute on our long term strategic goals.”
The proceeds from the credit facilities, along with the proceeds from the company’s concurrent equity private placement, will be used to partially fund the company’s previously announced acquisition of the land and real estate assets of Harrah’s Las Vegas Hotel and Casino in a sale leaseback transaction.
They will also be used to refinance the company’s $1.638 billion existing first lien term loan, to redeem in full the company’s $312 million aggregate principal amount of first priority senior secured floating rate notes due 2022 and to repurchase $400 million aggregate principal amount of mezzanine debt, in addition to their use as working capital.
Goldman Sachs Bank served as administrative agent for both facilities. Goldman Sachs Bank, Morgan Stanley Senior Funding, Merrill Lynch, Pierce, Fenner & Smith, Barclays Bank, Citigroup Global Markets and JPMorgan Chase Bank served as joint lead arrangers and joint bookrunners. Citizens Bank, Credit Suisse Securities, Deutsche Bank Securities and UBS Securities served as co-arrangers.
Kramer Levin Naftalis & Frankel acted as legal advisor to the company.