Collaborates on Native American Development Venture by Vici: Details Unveiled
Unleashing Opportunities: ViciProperties and Station Casinos Join Forces on a monumental Scale
Let's dive into the thrilling happenings at Vici Properties! The real headline from their first-quarter earning release this time around concerns the second quarter.
The investment trust (REIT) has established a groundbreaking $510 million financing agreement to build a tribal casino in northern California. This venture, owned by the North Fork Mono Rancheria, is being masterfully crafted by Station Casinos.
The North Fork loan, Vici's inaugural transaction with Station, has been cleverly structured into two installments. The initial loan of $340 million will see Vici contributing $125 million, while another lender handles the rest, with the second $385 million loan wholly funded by Vici. These loans are scheduled to pay up by 2031.
Edward Pitoniak, CEO, expressed his delight in a formal statement, "This transaction not only marks our second loan investment on tribal land but also Station Casinos' first alliance with a REIT. We cherish both these partnerships and take immense pride in our ability to establish deep relationships with ambitious, forward-thinking operators that will bolster our long-term growth goals and ambitions."
David Kieske, CFO, further added, "We are immensely proud of our meticulous focus on balance-sheet management and remaining adaptable in all market conditions."
Post March 31, Vici raised $1.3 billion through investment-grade senior notes to underwrite existing debt.
In non-gaming developments, Vici affirmed its collaboration with Eldridge Industries and Cain International on a $300 million retail development project in Beverly Hills, One Beverly Hills. Furthermore, Vici disclosed a $2.5 billion, multi-currency, unsecured, revolving, credit facility, replacing an unsecured, revolving, credit facility of the same size.
Total revenue for the quarter surged by 3.4 percent, landing at $984.2 million. However, profits faced a 7.9 percent slump, reaching $543.6 million. Vici ended the quarter with a cash reserve of $334.3 million and an impressive debt of $16.8 billion.
This alliance between Vici Properties and Station Casinos revolves around a colossal tribal casino project valued at approximately $725 million for the North Fork Rancheria of Mono Indians near Madera, California. The venture's intricate details include:
- Financing Structure: Almost $725 million in total financing, with Vici's share accounting for $510 million divided into two tranches:
- The initial loan of $340 million, with Vici contributing $125 million alongside another lender.
- The second loan of $385 million, fully funded by Vici.
- Both loans are due for repayment by 2031.
- Counterparties: The loan arrangement was facilitated through the North Fork Rancheria Economic Development Authority (NFR EDAB) and a lender consortium, spearheaded by Vici.
- Roles: Vici Properties assumes the role of the principal financier through crafted loans, marking its second tribal land investment and first partnership with Station Casinos. Station Casinos spearheads the project's development and management, continuing a 20+ year partnership with the tribe.
- Project Overview: This planned tribal gaming and hospitality venture goes by the name North Fork Mono Casino & Resort. Its purpose is to stimulate economic growth for the North Fork Rancheria, and construction commenced post-agreement in May 2025.
- The collaboration between Vici Properties and Station Casinos, valued at approximately $725 million, involves financing a tribal casino project for the North Fork Rancheria of Mono Indians near Madera, California.
- In this arrangement, Vici Properties is contributing $510 million towards the total financing of $725 million, which is divided into two tranches: an initial loan of $340 million, with Vici contributing $125 million, and a second loan of $385 million, fully funded by Vici.
- This marks Vici Properties' second tribal land investment and their first partnership with Station Casinos, with Station Casinos spearheading the project's development and management.
