Item 1.01. Entry into a Material Definitive Agreement
On April 20, 2022, VICI Properties Inc., a Maryland corporation (the "Company"),
and VICI Properties L.P., a Delaware limited partnership ("VICI LP"), entered
into an underwriting agreement (the "Underwriting Agreement") with Deutsche Bank
Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan
Stanley & Co. LLC and Wells Fargo Securities, LLC, as representatives of the
several underwriters listed on Schedule I thereto (collectively, the
"Underwriters"), pursuant to which VICI LP agreed to issue and sell
$500.0 million aggregate principal amount of 4.375% Senior Notes due 2025 (the
"2025 Notes"), $1.25 billion aggregate principal amount of 4.750% Senior Notes
due 2028 (the "2028 Notes"), $1.0 billion aggregate principal amount of 4.950%
Senior Notes due 2030 (the "2030 Notes"), $1.5 billion aggregate principal
amount of 5.125% Senior Notes due 2032 (the "2032 Notes") and $750.0 million
aggregate principal amount of 5.625% Senior Notes due 2052 (the "2052 Notes"
and, together with the 2025 Notes, the 2028 Notes, the 2030 Notes and the 2032
Notes, the "Notes").
The 2025 Notes will be issued at 99.955% of par value with a coupon of 4.375%
per annum. The 2028 Notes will be issued at 99.932% of par value with a coupon
of 4.750% per annum. The 2030 Notes will be issued at 99.771% of par value with
a coupon of 4.950% per annum. The 2032 Notes will be issued at 99.779% of par
value with a coupon of 5.125% per annum. The 2052 Notes will be issued at
99.379% of par value with a coupon of 5.625% per annum.
Interest on the 2025 Notes, the 2032 Notes and the 2052 Notes is payable
semi-annually in arrears on May 15 and November 15 of each year, commencing
November 15, 2022. Interest on the 2028 Notes and the 2030 Notes is payable
semi-annually in arrears on February 15 and August 15 of each year, commencing
August 15, 2022.
The 2025 Notes will mature on May 15, 2025, the 2028 Notes will mature on
February 15, 2028, the 2030 Notes will mature on February 15, 2030, the 2032
Notes will mature on May 15, 2032 and the 2052 Notes will mature on May 15,
2052. VICI LP estimates that the net proceeds from this offering will be
approximately $4,934.5 million, after deducting the underwriting discounts, the
additional discretionary fee of $10.0 million and other estimated offering
expenses payable by VICI LP. The offering is expected to close on April 29, 2022
subject to the satisfaction of customary closing conditions.
The offering was made pursuant to an automatic shelf registration statement
filed with the Securities and Exchange Commission on April 18, 2022 (File
No. 333-264352-01),
a base prospectus, dated April 18, 2022 and a prospectus supplement, dated
April 20, 2022 and filed by VICI LP with the Commission pursuant to Rule 424(b)
under the Securities Act of 1933, as amended.
VICI LP intends to use the net proceeds from the offering to fund all of the
Company's obligation to redeem a majority of the units of VICI Properties OP LLC
to be received by MGM Resorts International or its subsidiaries in connection
with the closing of the Company's previously announced acquisition of MGM Growth
Properties LLC and to repay amounts outstanding under VICI LP's revolving credit
facility. As of April 15, 2022, there was $600.0 million outstanding under VICI
LP's revolving credit facility, which was drawn on February 18, 2022 to fund a
portion of the purchase price of the acquisition of The Venetian Resort Las
Vegas and Venetian Expo.
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Under the Underwriting Agreement, the Company and VICI LP made certain customary
representations, warranties and covenants concerning the Company, VICI LP and
the registration statement, and the Company and VICI LP have also agreed to
indemnify the Underwriters against certain liabilities and/or to contribute to
payments that the Underwriters may be required to make in respect of those
liabilities. Certain of the Underwriters and their respective affiliates have,
from time to time, performed, and may in the future perform, various financial
advisory, commercial banking and investment banking services for the Company,
for which they received or will receive customary fees and expenses. In
particular, affiliates of certain of the Underwriters are lenders under VICI
LP's revolving credit facility, delayed draw term and other debt facilities, and
may receive pro rata portions of the net proceeds from the offering that are
used to repay amounts outstanding under VICI LP's revolving credit facility.
The foregoing description of the Underwriting Agreement does not purport to be
complete and is subject to, and is qualified in its entirety by reference to,
the full text of the Underwriting Agreement, which is attached hereto as Exhibit
1.1 and is incorporated by reference herein.
Item 8.01 Other Events.
Hogan Lovells US LLP, counsel to the Company and VICI LP, has issued an opinion
to the Company and VICI LP dated April 25, 2022 regarding the legality of the
Notes. A copy of the opinion is filed as Exhibit 5.1 hereto and incorporated by
reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. Description
1.1 Underwriting Agreement, dated April 20, 2022, by and among the
Company, VICI LP and Deutsche Bank Securities Inc., Goldman Sachs &
Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and
Wells Fargo Securities, LLC, as representatives of the several
underwriters listed on Schedule I thereto.
5.1 Opinion of Hogan Lovells US LLP regarding the legality of the Notes.
23.1 Consent of Hogan Lovells US LLP (included in Exhibit 5.1).
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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