Penn National Gaming Inc. and Vici Properties Inc.’s $1 Billion Acquisition of Greektown Casino-Hotel

Goldman Sachs & Co. LLC is acting as financial advisor and Kramer Levin Naftalis & Frankel LLP is acting as legal advisor to VICI Properties. Paul, Weiss is representing Jack Entertainment LLC in the sale.

VICI Properties Inc. (NYSE: VICI), an experiential real estate investment trust (“REIT”), has, together with Penn National Gaming, Inc. (PENN: Nasdaq) entered into definitive agreements to acquire the real property and operations of the Greektown Casino-Hotel, located in downtown Detroit, Michigan, for an aggregate purchase price of approximately $1.0 billion in cash. Under the terms of the agreements, VICI Properties will acquire the land and real estate assets of Greektown for approximately $700.0 million, and Penn National will acquire the operating assets of Greektown for approximately $300.0 million.

Simultaneous with the closing of this transaction, the Company will enter into a triple-net lease agreement with Penn National related to Greektown. The lease will have an initial total annual rent of $55.6 million for an implied capitalization rate of 7.9%, with an initial term of 15 years, with four 5-year renewal options. The rent coverage ratio in the first year after closing is expected to be 1.8x and the tenant’s obligations under the lease will be guaranteed by Penn National.

The Kramer Levin team advising VICI is led by Corporate partners Todd E. Lenson and Jordan M. Rosenbaum and Real Estate partners James P. Godman and Tzvi Rokeach. The deal team also includes Corporate partners Christopher S. Auguste and David J. Fisher and associates Gladisley Sánchez, Jeffrey H. Taub, and Jeffrey Taylor; Real Estate associates Simon Heimowitz, Dennis K. Heyman, Jessica McGrath, Seth R. Niedermayer, Jacqueline Ryu, Daniel Stewart, M. Mendel Trapedo and Josh S. Winefsky; Tax partner Barry Herzog and associate Rita Celebrezze D’Souza; and Environmental partner Charles S. Warren and associate Julia A. Quigley.

Paul, Weiss is representing Dan Gilbert-owned Jack Entertainment LLC in the sale with a team including corporate partners Jeffrey Marell (Picture), Scott Barshay, Gregory Ezring, Brian Janson and Mark Wlazlo and counsel Daniel Layfield, Kyle Seifried and Patricia Vaz de Almeida; real estate partner Peter Fisch and counsel Barry Langman; litigation partner Andrew Forman and counsel Daniel Mason; intellectual property partner Chuck Googe; tax partner Jeffrey Samuels; employee benefits partner Lawrence Witdorchic and counsel Jason Ertel; antitrust counsel Marta Kelly; and environmental counsel William O’Brien.

 

Involved fees earner: Todd Lenson – Kramer Levin Naftalis & Frankel LLP; Jordan Rosenbaum – Kramer Levin Naftalis & Frankel LLP; Christopher Auguste – Kramer Levin Naftalis & Frankel LLP; David Fisher – Kramer Levin Naftalis & Frankel LLP; Gladisley Sánchez – Kramer Levin Naftalis & Frankel LLP; Jeffrey Taub – Kramer Levin Naftalis & Frankel LLP; Jeffrey Taylor – Kramer Levin Naftalis & Frankel LLP; James Godman – Kramer Levin Naftalis & Frankel LLP; Tzvi Rokeach – Kramer Levin Naftalis & Frankel LLP; Simon Heimowitz – Kramer Levin Naftalis & Frankel LLP; Dennis Heyman – Kramer Levin Naftalis & Frankel LLP; Jessica McGrath – Kramer Levin Naftalis & Frankel LLP; Seth Niedermayer – Kramer Levin Naftalis & Frankel LLP; Jacqueline Ryu – Kramer Levin Naftalis & Frankel LLP; Daniel Stewart – Kramer Levin Naftalis & Frankel LLP; Mendel Trapedo – Kramer Levin Naftalis & Frankel LLP; Josh Winefsky – Kramer Levin Naftalis & Frankel LLP; Barry Herzog – Kramer Levin Naftalis & Frankel LLP; Rita Celebrezze – Kramer Levin Naftalis & Frankel LLP; Charles Warren – Kramer Levin Naftalis & Frankel LLP; Julia Quigley – Kramer Levin Naftalis & Frankel LLP; Jeffrey Marell – Paul Weiss Rifkind Wharton & Garrison; Scott Barshay – Paul Weiss Rifkind Wharton & Garrison; Gregory Ezring – Paul Weiss Rifkind Wharton & Garrison; Brian Janson – Paul Weiss Rifkind Wharton & Garrison; Mark Wlazlo – Paul Weiss Rifkind Wharton & Garrison; Daniel Layfield – Paul Weiss Rifkind Wharton & Garrison; Kyle Seifried – Paul Weiss Rifkind Wharton & Garrison; Patricia Vaz de Almeida – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Barry Langman – Paul Weiss Rifkind Wharton & Garrison; Andrew Forman – Paul Weiss Rifkind Wharton & Garrison; Daniel Mason – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Charles Googe – Paul Weiss Rifkind Wharton & Garrison; Jeffrey Samuels – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison; Jason Ertel – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Kramer Levin Naftalis & Frankel LLP; Paul Weiss Rifkind Wharton & Garrison;

Clients: Jack Entertainment LLC; VICI Properties Inc;