GLPI Prices $1.3 Bln Notes Offering, Plans to Redeem $975 Mln 2026 Notes

Gaming and Leisure Properties has priced a $1.3 billion notes offering in two tranches, with senior notes due in 2033 and 2037. The net proceeds will be used to redeem existing debt and for working capital, property development, and other business needs. The offering is expected to close on August 27.

Gaming and Leisure Properties, Inc. (GLPI) has priced a $1.3 billion notes offering in two tranches, with senior notes due in 2033 and 2037. The offering, which is expected to close on August 27, will be used to redeem existing debt and for working capital, property development, and other business needs. The company's stock closed trading 0.83% higher at $46.25 on the Nasdaq on Wednesday.

The notes offering consists of two tranches. The first tranche includes $600 million of 5.250% senior notes due in 2033, priced at 99.642% of par. The second tranche includes $700 million of 5.750% senior notes due in 2037, priced at 99.187% of par. The net proceeds from the offering will be used to fully redeem the company's $975 million 5.375% senior unsecured notes due April 2026 at par, plus accrued interest and a make-whole premium, along with related fees and expenses. The remaining funds will be allocated for working capital and general corporate purposes, including potential development projects and debt repayment.

The company's strategic debt offering is aimed at refinancing existing debt at competitive rates, extending the maturity profile, and maintaining financial flexibility. The 2033 notes come with a slightly lower coupon of 5.25% compared to the 5.375% of the notes due in 2026, while the 2037 notes carry a higher rate of 5.75%. Both tranches are priced slightly below par, effectively raising the yield for investors.

The successful pricing of the notes offering demonstrates GLPI's continued access to capital markets despite elevated interest rates. The company is essentially trading near-term debt obligations for longer-dated maturities, which reduces refinancing risk in the coming years while maintaining operational flexibility through the additional proceeds.

The offering is being syndicated by a broad group of 18 financial institutions, indicating strong market interest. With approximately $325 million in proceeds beyond the redemption needs, GLPI gains additional financial flexibility for potential development projects and expansion opportunities. As a gaming REIT, this capital structure optimization supports GLPI's ability to continue pursuing growth while managing its debt maturity ladder effectively.

References:
[1] https://www.nasdaq.com/articles/gaming-and-leisure-properties-prices-13-bln-notes-offering-two-tranches
[2] https://www.stocktitan.net/news/GLPI/gaming-and-leisure-properties-announces-pricing-of-600-000-000-of-5-pan9bfihx7fr.html