VICI completed $1.75 billion bond offering in August to refinance debt
Key Facts
VICI Properties announced on 14 August 2026 that its subsidiary, VICI Properties L.P., had completed a public offering of senior unsecured notes with an aggregate principal amount of $1.75 billion, primarily to repay existing debt. According to the prospectus filed with the U.S. Securities and Exchange Commission, the company intends to use the proceeds to repay all or part of specified series of notes, with any remaining net proceeds allocated to other uses. The targeted debt includes an outstanding series with an original principal amount of $480.5 million and a coupon of 4.500%, among the obligations identified in the prospectus's use-of-proceeds plan. The plan also includes repaying all or part of MGP Operating Partnership's notes, with an original principal amount of $19.5 million. The targeted debt also includes a larger series with an original principal amount of $1.25 billion and a coupon of 4.250%, according to the same prospectus.
The offering comprised two tranches differing in size, coupon and offering price, with the first carrying a principal amount of $900 million, according to the company's announcement of the transaction's completion. This tranche carries a coupon of 5.400% and was issued at 99.966% of its principal amount, a price below the amount representing the underlying debt. The second tranche had a principal amount of $850 million and a coupon set at 5.750%, according to the company's pricing announcement. Its issue price was set at 98.375% of principal, giving it a lower relative price than the first tranche despite its higher coupon. Compared with the two outstanding debt series whose coupons were specified in the prospectus, both new tranches carry higher coupons, while their issue prices also differ.
After using the funds for repayment, VICI intends to allocate what the prospectus described as "any remaining net proceeds" to general corporate purposes, including property acquisitions and improvements. The stated uses also include capital expenditure and working capital, as well as repayment or refinancing of other debt, in the order listed in the prospectus. The transaction comes against the backdrop of financial guidance the company updated in its second-quarter 2026 earnings announcement for full-year adjusted funds from operations. VICI set its guidance range for the measure at $2,675–2,695 million, the annual range disclosed in its earnings release. On a diluted per-share basis, the company projected adjusted funds from operations of $2.45–2.47 for fiscal 2026, alongside its aggregate estimate for the same measure.
The company's next financial performance disclosure is its third-quarter results announcement on 28 October 2026 after the market close, according to its earnings schedule announcement. VICI will hold its earnings conference call and audio webcast on 29 October 2026 at 10:00 a.m. U.S. Eastern Time, the day after the results are released. For servicing the new notes, the pricing announcement set 15 April 2027 as the date cash interest payments begin. The first tranche's principal matures on 15 October 2031, according to the offering completion announcement, which specified its final maturity. The second tranche matures on 15 October 2036, according to the pricing announcement, leaving the offering's principal maturities spread across those two dates.