Ed Pitoniak, CEO of VICI Properties VICI Characteristics Inc., a Las Vegas-based owner of net leased gambling establishments, completed the fourth-largest REIT going public in history yesterday and began trading this morning on the NYSE under the sign VICI. VICI priced an upsized offering of 60.5 million shares at$20/share. The REIT has actually also approved to the underwriters a 30-day overallotment choice to buy up to an additional 9.075 million shares. In overall, the REIT is expected to raise gross profits of $1.4 billion. The offering was coincidentally substantial for another reason.
In ending up being the 4th largest REIT IPO in history and the biggest hotel REIT, according to NAREIT data, VICI replaced its rival MGM Growth Characteristic because area, which had raised $1.2 billion in its IPO 2 years ago. Simply 2 weeks back, MGM Development Residences made an unsolicited deal to buy VICI
for$ 19.50 shares. VICI rejected the bid thinking that its prospects as a standalone independent business could deliver substantially exceptional results, Ed Pitoniak, CEO of VICI said. VICI’s stock has been trading today at around$1 more per share than its IPO price. The IPI raised some$200 to$300 million more than at first prepared. Pitoniak told CoStar they would be weighing everyday the best ways to release the additional money raised, including how much dry powder they might
wish to place on their books. About $670 countless the proceeds were already allocated to pay for some arrearage. In addition to the IPO raise, in late December, VICI raised another $1 billion in a personal equity offering. The net earnings from the transaction were used to partially
fund VICI’s purchase of Harrah’s Las Vegas for$1.14 billion. Pitoniak stated he was gratified by the level of assistance from financiers and the worth they placed on the company and its real estate. Substantiated of the bankruptcy reorganization of Caesars Home entertainment Corp., VICI Residence was spun-off late in 2015 as the owner of a diverse portfolio consisting of 20 gaming facilities including Caesars Palace Las Vegas. Its nationwide, geographically diverse portfolio consists of over 36 million square feet and functions around 14,500 hotel rooms and more than 150 restaurants, bars and clubs. Morgan Stanley, Goldman Sachs & Co. LLC and BofA Merrill Lynch served as joint book-running supervisors and as representatives of the underwriters for the offering. Barclays, Citigroup and Deutsche Bank Securities are working as bookrunners. Credit Suisse, UBS Financial Investment Bank, Stifel, People Capital Markets, Wells Fargo Securities, Nomura and Union Video gaming are serving as co-managers for the offering. The law practice of Kramer Levin represented VICI in the offering and its formation in 2015.