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VICI Properties Enters Into Agreements Relating To Gold Strike Casino Resort In Tunica, MS

VICI Properties Inc. (NYSE:VICI) ("VICI Properties" or "VICI" or the "Company") announced today that, in connection with MGM Resorts International's ("MGM Resorts") (NYSE:MGM)

Benzinga · 06/09/2022 16:31

VICI Properties Inc. (NYSE:VICI) ("VICI Properties" or "VICI" or the "Company") announced today that, in connection with MGM Resorts International's ("MGM Resorts") (NYSE:MGM) agreement to sell the operations of Gold Strike Casino Resort ("Gold Strike"), located in Tunica, MS, to Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses ("CNB"), VICI has agreed to enter into a new separate lease with CNB related to the operations of Gold Strike (the "Gold Strike Lease") and also enter into an amendment to the Master Lease between VICI Properties and MGM Resorts (the "MGM Master Lease").

John Payne, President and Chief Operating Officer of VICI Properties, said, "This transaction continues to demonstrate VICI's ability to build strong relationships with new partners while working collaboratively with existing tenants to support their strategic objectives. We are pleased to welcome Cherokee Nation Businesses as our ninth gaming tenant and we look forward to a long-term partnership as they pursue additional growth initiatives in the future."

Chuck Garrett, Chief Executive Officer of Cherokee Nation Businesses, said, "We are excited about the opportunity to grow our gaming and hospitality businesses as we execute on our strategic growth plan to expand our presence outside of the Cherokee Nation Reservation. We are looking forward to working with VICI, which has established itself as a leader in providing financial solutions to Tribal Nations."

The Gold Strike Lease will have initial annual base rent of $40 million with other economic terms substantially the same as the MGM Master Lease, including a base term of 25-years with three 10-year tenant renewal options, escalation of 2.0% per annum (with escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease year 11) and minimum capital expenditure requirements of 1.0% of annual net revenue. The Gold Strike Lease will be guaranteed by Cherokee Nation Businesses.

VICI Properties has also agreed, in accordance with, and as contemplated by, the terms of the MGM Master Lease, to amend the MGM Master Lease to account for MGM's divestiture of the operations of Gold Strike, which will result in a reduction of the initial annual base rent under the MGM Master Lease by $40 million.

The transactions referenced herein are expected to be completed in the first half of 2023 and are subject to customary closing conditions and regulatory approvals.