VICI Investors Approve Share Issuance for MGM Growth Properties Acquisition
VICI Properties (NYSE:VICI) shareholders approved the issuance of a massive amount of new equity to fund the company’s $17.2 billion all-stock acquisition of competitor MGM Growth Properties (NYSE:MGP).
The Caesars Palace possessor said in Aug it’s acquiring MGM Growth in a sell creating the largest landlord of gambling casino real land on the Las Vegas Strip and beyond. MGP investors will find 1.366 shares of freshly issued VICI equity for from each one share of MGP they currently own, valuing the MGM Grand possessor at $43 a share.
To fund the takeover, VICI is issuing young equity tantamount(p) to 90 percent of its stream shares owing(p) tally. As of Oct. 29, the gaming real landed estate investment trust (REIT) has 555.15 jillion shares outstanding, according to Finviz data.
At the VICI Properties Special Meeting of Stockholders held (Friday), more than 99.9 percent of the votes stamp were voted inward favor of the issuance of new shares of VICI usual gunstock to MGP Class group A stockholders as consideration inward the merger, which votes represented close to 90 percent of the owing(p) shares of VICI mutual stock,” according to a statement issued by the REIT.
The dealings is scheduled to tightlipped inwards the first half of 2022.
VICI Becomes John R. Major Strip Player
Under the terms of the transaction, VICI assumes $5.7 billion inward MGP debt and gets MGM Resorts International’s (NYSE:MGM) $4.4 one million million stake in the existent land investment trustingness (REIT) it spun turned inwards 2016.
With the purchase of MGP, VICI morphs into a major gambol on the Strip existent acres scene. While the REIT owns the dimension assets of the famed Caesars, it generates less than a 3rd of its renting income from Las Vegas. The acquisition of MGP significantly alters VICI’s portfolios as the point owns all or part of the dimension assets of half-dozen Strip venues — Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage and New House of York New York.
Overall, the buyer adds the existent land of 15 gaming venues to its portfolio, with Las Vegas comely 45 percent of its split base. Regional casinos will business relationship for the rest.
In January, New York-based VICI signaled spirit to advance its Strip footmark as it teamed upwardly with common soldier equity steadfast Phoebus Apollo Global Management (NYSE:APO) to gain the Venetian Resort and Sands Expo and Convention Center on the Strip for $6.25 one thousand million from Las Vegas Sands.
VICI Earnings
Neither the Venetian nor the MGP transactions are finalized yet so those deals aren’t in time touching VICI upper side and undersurface line of business results.
The REIT delivered third-quarter numbers on Wednesday, expression revenue jumped 10.6 percent to $375.7 jillion patch acquired monetary resource from operations (AFFO) roseate 12.9 percent year-over-year to $257.4 million.
VICI confirmed the MGP acquisition testament append $1.009 1000000000 in annualized rent.