VICI Properties Inc. announced last Friday that it has provided Caesars Inc. a mortgage amounting to $400M. The loan was in accordance with the LOI entered upon by the contracting companies last June 15, 2020 and is secured by the Caesars Forum Convention Center.
The mortgage has an initial interest rate of 7.7% and a term of five years. It is pre-payable starting in year 3 subject to certain conditions. The Caesars Forum is subject to an amended Put/Call Agreement between VICI and Caesars Inc. with the former’s call option being accelerated to 2025 in connection with the entry into the mortgage agreement.
Conditioned to the Merger
Last June, VICI Properties agreed to loan Eldorado Resorts Inc.$400M via a Letter of Intent (LOI). The loan was to be secured by the recently opened Caesars Forum Convention Center in Las Vegas. It was conditioned to completion of the $17.5B merger between Eldorado and Caesars Entertainment which was completed in July 2020. Additionally, VICI agreed to purchase 23 acres of underdeveloped land near the center of the Las Vegas Strip for $103.5M.
Prior to the merger, Eldorado operated 23 properties in 11 states, including the Eldorado Resort in Nevada and Louisiana, Tropicana properties in New Jersey, Nevada, and Indiana, and the Isle of Capri or Isle properties in Louisiana, Florida, Colorado, Missouri, Iowa, and Mississippi.
Largest CAsino and Entertainment Company in the U.S.
Meanwhile, Caesars Entertainment primarily operated under Caesar’s, Harrah’s and the Horseshoe brands, with properties all over the world including Dubai. The surviving entity is known as Caesars Entertainment, Inc. and is now the largest casino and entertainment company in the United States.
VICI Properties Inc. is one of the largest real estate investment trust companies in the United States. Its geographically diversified portfolio of 31 gaming companies includes the world-famous Caesars Palace and has a total of 50 million square feet. The properties are leased to leading gaming operators like Caesars, Hard Rock Casinos, Century Casinos Inc., JACK Entertainment, and Penn National Gaming.