– Agrees to Provide $400 Million Loan Secured
by the Newly Built Caesars Forum Convention Center –
– Strategic Acquisition of ~23 Acres of
Undeveloped Land Adjacent to the Center of the Las Vegas Strip
–
VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the
“Company”), an experiential real estate investment trust, today
announced it has agreed to provide a $400 million mortgage loan
secured by the Caesars Forum Convention Center in Las Vegas. The
loan will bear interest at a rate of 7.7%, with payments subject to
2% annual escalation, and will have a term of 5 years pre-payable
beginning in year 3 subject to certain conditions. The Caesars
Forum Convention Center will remain subject to the existing
Put/Call Agreement between Caesars Entertainment Corporation
(“Caesars”) and VICI, with certain modifications, including VICI’s
call option accelerating to 2025.
Additionally, VICI Properties has agreed to acquire
approximately 23 acres of undeveloped land parcels adjacent to the
center of the Las Vegas Strip for a purchase price of $4.5 million
per acre for total proceeds of approximately $103.5 million. The
acquisition of these land parcels, in addition to the existing 27
acres VICI owns, will give VICI control of 50 acres of land in the
vicinity of Harrah’s Las Vegas, The Linq, Flamingo, Bally’s, Paris
and Planet Hollywood on the east side of the Las Vegas Strip.
Additionally, the VICI land parcel will be adjacent, along its
entire western length, to the Las Vegas Monorail, which carries
approximately 4.6 million passengers a year, and will also be
alongside The High Roller, a skyride attraction that generates
approximately 1.5 million visits per year.
The loan and the acquisition of the land parcels are pursuant to
a non-binding letter of intent with Eldorado Resorts, Inc.
(“Eldorado”) and the closing of such transactions is conditioned
upon the business combination of Eldorado and Caesars and remains
subject to completion of due diligence and negotiation of
definitive documentation, and other customary closing conditions.
The closing of the loan and the acquisition of the land are
intended to close concurrently and are cross conditioned.
“These investments express VICI’s strong conviction in Caesars’
market leadership, in Las Vegas as the world’s foremost convention
destination and in Strip-proximate land as an opportunity to
capitalize on the long-term growth of Las Vegas,” said Ed Pitoniak,
Chief Executive Officer of VICI Properties. “Our mortgage on the
Caesars Forum Convention Center will produce immediate economic
benefits for VICI’s stockholders and incremental liquidity for the
combined Caesars/Eldorado. Our consolidation of the land parcels
that run from the Caesars Forum Convention Center and the adjacent
and magnificent MSG Sphere at the north to the backside of Planet
Hollywood at the south gives VICI an unrivaled opportunity, over
time, to partner with world-class developers and operators in
creating the next great Las Vegas place—a multi-property,
multi-dimensional experience.”
John Payne, President and Chief Operating Officer of VICI
Properties said, “We are excited to announce this creative
transaction with our largest tenant, which demonstrates our ability
to structure transactions that are mutually beneficial for all
parties while growing our revenue base accretively and maximizing
optionality. The Caesars Forum Convention Center sets a new
standard for convention facilities and we are thrilled to structure
this transaction for a truly state of the art property. From the
day we started VICI in the Fall of 2017 we have always worked,
energetically, to create and execute solutions that contribute to
our tenants’ success and our stockholders’ long-term value
creation.”
About VICI Properties
VICI Properties is an experiential real estate investment trust
that owns one of the largest portfolios of market-leading gaming,
hospitality and entertainment destinations, including the
world-renowned Caesars Palace. VICI Properties’ national,
geographically diverse portfolio consists of 28 gaming facilities
comprising over 40 million square feet and features approximately
15,600 hotel rooms and more than 180 restaurants, bars and
nightclubs. Its properties are leased to industry leading gaming
and hospitality operators, including Caesars Entertainment
Corporation, Century Casinos Inc., Hard Rock International, JACK
Entertainment and Penn National Gaming, Inc. VICI Properties also
owns four championship golf courses and 34 acres of undeveloped
land adjacent to the Las Vegas Strip. VICI Properties’ strategy is
to create the nation’s highest quality and most productive
experiential real estate portfolio. For additional information,
please visit www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “anticipates”, “assumes,”
“believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,”
“projects,” and similar expressions that do not relate to
historical matters. All statements other than statements of
historical fact are forward-looking statements. You should exercise
caution in interpreting and relying on forward-looking statements
because they involve known and unknown risks, uncertainties, and
other factors which are, in some cases, beyond the Company’s
control and could materially affect actual results, performance, or
achievements. These risks, uncertainties and other factors include,
but are not limited to: the impact of changes in general economic
conditions, including low consumer confidence, unemployment levels
and depressed real estate prices resulting from the severity and
duration of any downturn in the U.S. or global economy (including
stemming from the COVID-19 pandemic and changes in the economic
conditions as a result of the COVID-19 pandemic); the business
combination of Eldorado and Caesars may not be consummated on the
timeframe contemplated, or at all; the fact that the transactions
described herein may not be completed on the terms contemplated or
at all; risks that the Company may not achieve the benefits
contemplated by our pending and recently completed transactions and
acquisitions of real estate assets, including the transactions
described herein; risks that not all potential risks and
liabilities have been, or will be, identified in the Company’s due
diligence for our pending and recently completed transactions,
including the transactions described herein; risks regarding the
ability to receive, or delays in obtaining, the governmental and
regulatory approvals and consents required to consummate our
pending transactions, or other delays or impediments to completing
our pending transactions; our ability to obtain the financing
necessary to complete our pending transactions, including the
transactions described herein, on the terms we currently expect or
at all; the possibility that our pending transactions, including
the transactions described herein, may not be completed or that
completion may be unduly delayed; and the effects of our recently
completed acquisitions and the pending transactions, including the
transactions described herein, on us, including the future impact
on our financial condition, financial and operating results, cash
flows, strategy and plans. Important factors that may affect the
Company’s business, results of operations and financial position
are detailed from time to time in the Company’s filings with the
Securities and Exchange Commission. The Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except as may be required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200615005757/en/
Investor Contacts: Investors@viciproperties.com (646)
949-4631
Or
David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com
Danny Valoy Vice President, Finance
DValoy@viciproperties.com
Media: PR@viciproperties.com (646) 949-4631
Or
ICR Phil Denning and Jason Chudoba Phil.Denning@icrinc.com,
(646) 277-1258 Jason.Chudoba@icrinc.com, (646) 277-1249
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