Vici Secures Underwriting for Station's Tribal Development Venture
Let's dish on the juicy news from VICI Properties' first-quarter earnings! While there were plenty of details to unpack, one particular announcement has everyone talking.
Vici Properties, known for its real estate investments, has just secured a $510 million deal to help finance a casino project in northern California. That's right, a tribal casino owned by the North Fork Mono Rancheria and operated by none other than Station Casinos.
This deal - the first ever for VICI Properties with Station Casinos - is a two-tranche arrangement. The first loan of $340 million will be divided, with VICI coughing up $125 million, while the remaining sum goes to another lender. The second loan, amounting to $385 million, is all VICI's. The loans, with a maturity date in 2031, are eagerly awaited!
As per CEO Edward Pitoniak, this transaction marks a significant milestone for Vici. He claims, "This is Vici's second loan investment on tribal land and Station Casinos' first partnership with a REIT. We're stoked about these partnerships and can't get enough of growth-minded operators who share our long-term goals!"
CFO David Kieske chimed in, praising Vici's vigilance in managing its balance sheet and maintaining readiness in various market environments.
In other business news, Vici dropped a cool $1.3 billion on investment-grade senior notes to manage existing debt.
Stepping away from the casinos, Vici has been busy with its partnership with Eldridge Industries and Cain International on a $300 million Beverly Hills retail development. It also announced a replacement for an unsecured, revolving credit facility of the same size, with a new $2.5 billion, multi-currency, unsecured, revolving credit facility.
For the quarter under review, revenue stood at a respectable $984.2 million, up by 3.4 percent. However, profits took a tumble, decreasing by 7.9 percent to $543.6 million. VICI wrapped up the quarter with a respectable $334.3 million in cash reserves and a hefty $16.8 billion in debt.
Now, while the search results didn't spill all the beans about this partnership between VICI Properties and Station Casinos, one thing's for sure - it's a deal worth watching! Stay tuned for more updates on this exciting venture. Cheers!
[1] Red Rock Resorts: https://www.redrockresorts.com/[2] North Fork Rancheria: https://www.california-indians.com/north-fork-tribe/[3] Station Casinos: https://www.stationcasinos.com/[4] VICI Properties: https://www.vici properties.com/
This article has been revised and restructured for clarity and flowIncorporated relevant enrichment data where appropriate
- VICI Properties, in partnership with Station Casinos, has secured $510 million financing for a tribal casino project in northern California, marking their first-ever venture together.
- The financing deal, a two-tranche arrangement, includes a $340 million loan, with VICI contributing $125 million, and a $385 million loan entirely funded by VICI.
- CEO Edward Pitoniak hailed this partnership as VICI's second loan investment on tribal land, while Station Casinos' first with a REIT (Real Estate Investment Trust), expressing excitement for future collaborations with growth-minded operators like Station Casinos.
