VICI Properties $159 Million Trading Volume Drops 33.21% Amid $1.3 Billion Debt Refinancing

On March 26, 2025, VICI Properties (VICI) saw a trading volume of $159 million, marking a 33.21% decrease from the previous day. The stock price rose by 0.82%.

VICI Properties has announced the pricing of a $1.3 billion public offering of senior unsecured notes. The offering consists of $400 million in 4.750% notes due 2028 and $900 million in 5.625% notes due 2035. These notes are set to mature on April 1 of their respective years. The proceeds from this offering will be used to repay existing notes due in 2025, including $500 million at 4.375% and $800 million at 4.625%, as well as for general corporate purposes such as property acquisitions, improvements, and working capital.

This debt refinancing by VICI Properties is a strategic move to manage liabilities by exchanging short-term debt for longer-dated maturities. The company is effectively rolling over their 2025 notes into new 2028 and 2035 notes. This transaction highlights VICI's proactive approach to addressing near-term maturities well ahead of their 2025 deadlines, thereby eliminating refinancing risk during a period of interest rate uncertainty. Management is willing to accept modestly higher interest costs to secure extended maturities, trading approximately 30-100 basis points in higher rates for 3-10 years of additional runway.

For a REIT of VICI's scale, this refinancing represents prudent balance sheet management. The higher coupon rates will increase annual interest expenses by roughly $13 million, a manageable increase given the company's size and stable cash flows from gaming property leases. The slight discount to par on issuance aligns with current market conditions and does not materially impact the economics of the transaction. This refinancing maintains VICI's overall debt level while extending its maturity profile, positioning the company with improved financial flexibility for future acquisition opportunities.