Posted on: April 14, 2022, 02:55h.
Final up to date on: April 14, 2022, 02:55h.
On line casino landlord VICI Properties (NYSE:VICI) is extending the deadline for MGM Progress Properties (NYSE:MGP) buyers to change notes in that firm for comparable devices issued by the Caesars Palace proprietor.
The change is tied to VICI’s $17.2 billion all-stock acquisition of its rival, which was introduced final August. Underneath the phrases of the transaction, VICI assumes $5.7 billion in MGP debt and will get MGM Resorts Worldwide’s (NYSE:MGM) $4.4 billion stake in the actual property funding belief (REIT) it spun off in 2016.
VICI is giving MGP shareholders extra time to change “as much as an combination principal quantity of $4.20 billion” for brand spanking new notes issued by the customer.
The VICI Issuers hereby prolong such expiration date from 5:00 p.m., New York Metropolis time, on April 14, 2022 to five:00 p.m., New York Metropolis time, on April 28, 2022,” stated the REIT in a press release.
MGP buyers will obtain 1.366 shares of newly issued VICI fairness for every share of MGP they at the moment personal.
Marriage Creating Strip Goliath
VICI’s acquisition of its rival creates the dominant proprietor of Las Vegas Strip gaming actual property.
By way of the deal, VICI provides Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, New York New York and Park MGM in addition to varied regional casinos operated by MGM Resorts Worldwide (NYSE:MGM). The Strip belongings MGP brings to the desk add to VICI’s portfolio within the largest US on line casino heart, which additionally consists of Caesars Palace, the Venetian and the Venetian Expo and Conference Heart.
The acquisition was initially scheduled to shut within the first half of this 12 months and whereas it stays on monitor to cross the end line, VICI provides it can prolong observe change deadlines if wanted.
“To the extent the consummation of the Mergers isn't anticipated to happen on or earlier than the then-anticipated Settlement Date, for any purpose, the VICI Issuers anticipate persevering with to increase the Expiration Date till such time that the Mergers could also be consummated on or earlier than the Settlement Date. The VICI Issuers will present discover of any such extension upfront of the Expiration Date,” stated the corporate within the assertion.
VICI Dedicated to Getting Deal Completed
It ought to be famous that in that within the months following announcement of the acquisition of MGP, the wedding has not gave the impression to be in jeopardy. Relatively, VICI is displaying dedication and suppleness by extending the notes change deadline.
VICI issued a large quantity of recent fairness to, partially, fund the acquisition. That diluted present buyers, however that would in the end show to be a case of near-term ache, long run acquire as a result of the deal transforms the customer.
General, VICI is including 15 gaming venues to its roster and nearly $1.01 billion in annualized lease. When the transaction closes, Las Vegas will drive 45% of VICI’s lease base.