VICI Traders Approve Share Sale To Fund MGP Acquisition


Posted on: October 30, 2021, 04:29h. 

Final up to date on: October 30, 2021, 06:33h.

VICI Properties (NYSE:VICI) shareholders have accredited the issuance of an enormous quantity of recent fairness. The aim is to fund the corporate’s $17.2 billion all-stock acquisition of rival MGM Progress Properties (NYSE:MGP).

Traders in Caesars Palace proprietor VICI Properties accredited the issuance of recent inventory. That may pay for the $17.2 billion takeover of MGM Progress Properties. The venue in Las Vegas is proven right here. (Picture: Bloomberg)

The Caesars Palace proprietor stated in August it’s buying MGM Progress. The deal creates the most important landlord of on line casino actual property on the Las Vegas Strip and past. MGP buyers will obtain 1.366 shares of newly issued VICI fairness for every share of MGP they at present personal, valuing the MGM Grand proprietor at $43 a share.

To fund the takeover, VICI is issuing new fairness equal to 90 p.c of its present shares excellent tally. As of Oct. 29, the gaming actual property funding belief (REIT) has 555.15 million shares excellent, in accordance with Finviz information.

On the VICI Properties Particular Assembly of Stockholders held (Friday), greater than 99.9 p.c of the votes solid have been voted in favor of the issuance of recent shares of VICI frequent inventory to MGP Class A stockholders as consideration within the merger, which votes represented roughly 90 p.c of the excellent shares of VICI frequent inventory,” in accordance with a press release issued by the REIT.

The transaction is scheduled to shut within the first half of 2022.

VICI Turns into Main Strip Participant

Below the phrases of the transaction, VICI assumes $5.7 billion in MGP debt. It additionally will get MGM Resorts Worldwide’s (NYSE:MGM) $4.4 billion stake in the true property funding belief (REIT) it spun off in 2016.

With the acquisition of MGP, VICI morphs into a serious play on the Strip actual property scene. Whereas the REIT owns the property belongings of the famed Caesars, it generates lower than a 3rd of its rental earnings from Las Vegas. The acquisition of MGP considerably alters VICI’s portfolios, because the goal owns all or a part of the property belongings of six Strip venues — Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, and New York New York.

Total, the client provides the true property of 15 gaming venues to its portfolio, with Las Vegas changing into 45 p.c of its hire base. Regional casinos will account for the remainder.

In January, New York-based VICI signaled intent to spice up its Strip footprint. It teamed up with personal fairness agency Apollo World Administration (NYSE:APO) to amass the Venetian Resort and Sands Expo and Conference Heart on the Strip for $6.25 billion from Las Vegas Sands.

VICI Earnings

Neither the Venetian nor the MGP transactions are finalized, so these offers aren’t but affecting VICI high and backside line outcomes.

The REIT delivered third-quarter numbers on Wednesday, saying income jumped 10.6 p.c to $375.7 million. That’s whereas acquired funds from operations (AFFO) rose 12.9 p.c year-over-year to $257.4 million.

VICI confirmed the MGP acquisition will add $1.009 billion in annualized hire.

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