VICI Properties Inc. $VICI (+2.65%) has announced the establishment of a new $2.5 billion multi-currency unsecured revolving credit facility. This new financing agreement, which matures on February 3, 2029, replaces the Company's previous credit facility in the same amount and has received the substantial support of a syndicate of 15 financial institutions.
The facility, which was reportedly oversubscribed, provides VICI Properties with the option to extend its maturity for additional six-month periods or a single twelve-month period. The interest rate is 85.0 basis points above the SOFR rate or the equivalent index rate for foreign currency loans, depending on the company's current credit ratings and leverage ratios. In addition, the company is obliged to pay a commitment fee of 20.0 basis points on the total commitments.
David Kieske, Executive Vice President and CFO of VICI Properties, expressed his gratitude for the continued support of the banking group and their confidence in the company's business model. He emphasized that the new credit facility strengthens the company's liquidity and financial flexibility, which is crucial for taking advantage of potential investment opportunities. According to InvestingPro data, VICI has a solid current ratio of 15.87, indicating exceptional liquidity with assets far exceeding current liabilities.
The syndicate of financial institutions backing this credit facility includes Wells Fargo Securities, LLC and JPMorgan Chase Bank, N.A. as Joint Bookrunners, with Wells Fargo Bank, N.A. serving as Administrative Agent. Other key participants included BofA Securities, Inc, Citibank, N.A. and JPMorgan Chase Bank, N.A. as Syndication Agents, in addition to several others who assumed roles as Documentation Agents and Joint Lead Arrangers.