VICI Properties L.P. completes $1.75 billion notes offering to refinance debt

VICI Properties L.P., a subsidiary of VICI Properties Inc., concluded a $1.75 billion notes offering on Friday to refinance existing debt. The company issued $900 million in 5.400% notes maturing in 2031 and $850 million in 5.750% notes maturing in 2036. The funds will be utilized to pay off senior notes maturing in 2026. This refinance comes amidst a challenging market for VICI, whose stock trades near its 52-week low of $26.36.

Despite the stock's current undervaluation, analysts remain bullish, suggesting potential opportunities for investors in the REIT sector. VICI Properties L.P. anticipates redeeming $480.5 million of its 4.500% senior notes maturing in September 2026 and $1.25 billion of its 4.250% senior notes maturing in December 2026. The newly issued notes are priced at 99.966% and 98.375% of par value, respectively, with coupon rates of 5.400% and 5.750% per annum.

Interest payments are made semi-annually, starting in April 2027. The notes are unsecured and unsubordinated, ranking equally with VICI Properties L.P.'s existing debt. While they are not guaranteed by VICI Properties Inc., certain subsidiaries may be required to provide guarantees under specific conditions. Redemption of the notes is permitted before maturity, with specific prices applicable within one to three months of their respective maturity dates.

The notes are secured by a pledge of limited partnership interests owned by VICI Properties OP LLC. This financial maneuver highlights VICI Properties' strategic approach while they adjust their performance trajectory.