DOCSLIB.ORG

View Annual Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
View Annual Report VICI PROPERTIES INC. ANNUAL REPORT 2019 1t CAESARS PALACE LAS VEGAS, NV HARVEY’S LAKE TAHOE STATELINE, NV MARGARITAVILLE BOSSIER CITY BOSSIER CITY, LA HARRAH’S LAS VEGAS LAS VEGAS, NV HORSESHOE COUNCIL BLUFFS COUNCIL BLUFFS, IA CASCATA GOLF COURSE BOULDER CITY, NV Dear VICI Stockholders, From VICI’s earliest days, we’ve focused relentlessly on the methods by which we will manage and grow your REIT. Taking advantage of our collective REIT experience as a management team and as a Board of Directors, we’ve attacked the following questions with as much energy and rigor as we can manage: 1. What’s the character of the culture out of which a great REIT grows? How do we attract and retain the best people, on both our Board and our management team, so we can live up to what we believe is axiomatic in real estate investment management: “the best people plus the lowest cost of capital wins”? 2. What are the partnership principles and methods that build and sustain a great REIT? How can we best implement those principles collaboratively, with our transaction partners, advisory partners, capital partners, both equity and debt, and our long-term operating partners and tenants? We’ve focused relentlessly on these questions because we believe finding the right answers to these questions is key to instilling and maintaining the right methods for managing, governing and growing VICI into the future. We focus intensely on our methods—or our means—because we fundamentally believe that the scalability of our REIT management and governance methods ultimately drives the scalability of our REIT results—or our ends. Looking back at 2019, our achievements were of a magnitude matched by very few other American REITs. We believe we had one of the most productive and value-creating years of any REIT in recent history. We’re proud of our achievements. But we’re even more proud that those outcomes are the result of the management team and the management method that we’ve been building since VICI Day 1. Here’s the essence of our strategic method: growing relationships. It is as simple as that. If we grow the right relationships in the right way, we will successfully grow and sustain the value of the REIT in the right way. The right way comes down to growing and constantly bettering our business by growing new relationships with new partners and sustaining and broadening mutually beneficial relationships with existing partners. These key partnerships include: 1. Our People: In 2019, our second full year of operation, VICI was one of only eight American REITs to receive certification as a Great Place to Work®. We are using the Great Places to Work® program to monitor and improve the experience of our people, because VICI’s success depends on the unceasing energy and engagement of our people. 2. Our Gaming Partners: In 2019, we expanded and improved our portfolio by establishing new relationships with operating partners in Reno, Nevada (Eldorado Resorts, Inc. (“Eldorado”)), Hollywood, Florida (Hard Rock), Vienna, Austria (Century Casinos, Inc.) and Detroit, Michigan (JACK Entertainment). In doing so, we added to our existing strong relationships with great partners in Las Vegas, Nevada (Caesars Entertainment Corporation) and Wyomissing, Pennsylvania (Penn National Gaming, Inc.). 3. Our Equity Partners: In 2019, we bettered our capital structure by growing our relationships with the equity investment community. As of the end of the year, we were the most owned Triple Net REIT by America’s dedicated REIT investment managers, measured both as a percentage of market capitalization and in absolute dollars. We were also the number one aggregate Triple Net REIT holding of Europe’s top real estate investors as of the end of the year. 4. Our Credit Partners: In late 2019 and early 2020, we further fortified our capital structure by initiating and quickly expanding our relationships within the fixed-income community, raising nearly $5 billion of unsecured debt at some of the best pricing achieved in recent history by such grade of credit. Through those financings, we redeemed in full our secured second lien debt and spread our debt maturity ladder more evenly across the next decade. We were able to achieve these goals, in part, because we were recognized for our stated ambition to become an investment-grade credit. 5. Our Learning Partners—Gaming: It is through our relationships with great operators and knowledgeable advisors that we learn more about the gaming marketplaces and stay current on broader trends and developments, both in those markets where we already own gaming real estate and those in which we may potentially acquire gaming real estate. 6. Our Potential New Sector Partners: It is also by growing relationships with operators and asset owners in other experiential sectors that we are learning and will continue to learn about these other sectors—learning that will determine if, when, with whom and how we will invest in sectors beyond gaming. This fundamental strategic method—growing our REIT and our value by growing our relationships with valuable partners—sounds simple and basic. And it is. At VICI, we are big believers in the power of the simple and basic to create long-term value. 2019 Growth & Portfolio Management Activities To sum up 2019, we led the Gaming REIT sector in acquisition activity. Indeed, we were the only Gaming REIT to announce any arms-length transactions in 2019. In total, we announced $4.9 billion of transactions, across regional and Las Vegas assets, at a blended 7.9% cap rate. Including the impact of our pending $3.2 billion transaction with Eldorado, which we announced in June 2019 and expect to close in the first half of 2020, we increased our annualized rent by approximately 45%, doubled our roster of best-in-class tenants and demonstrated consistent accretive acquisition activity for the third consecutive year (and during our third year in existence). During the fourth quarter of 2019, we closed the acquisition of three regional properties with Century Casinos. This $278 million transaction added $25 million of annual rent under a master lease, representing an attractive 9.0% cap rate. This transaction has important strategic significance in that it creates a new partnership with Century Casinos, an expert operator of small to mid-sized assets with the ambition to grow their U.S. gaming platform and demonstrates that we can further diversify through partnerships with operators of all sizes. Also in the fourth quarter of 2019, we announced our acquisition of JACK Cleveland Casino and JACK Thistledown Racino in a sale-leaseback transaction with JACK Entertainment. We subsequently closed on this transaction in January 2020, acquiring both properties for a total of $843 million, adding $65.9 million of annual rent to our portfolio through a master lease. This acquisition was consummated at an attractive 7.8% cap rate for urban real estate in Ohio, one of the fastest growing regional markets in the country. We have also worked diligently to secure an embedded growth pipeline intended to ensure that we maintain visible, long-term growth. Upon the closing of the Eldorado transaction later this year, our embedded pipeline will include two right of first refusal (“ROFR”) opportunities on Las Vegas Strip assets, a put/call option on two high-quality assets in the growing Indianapolis gaming market, a put/call option on the world-class Caesars Forum Convention Center in Las Vegas and an additional ROFR on an urban-core casino in Baltimore, Maryland. 2 2019 Balance Sheet Activities Since our emergence in October 2017, we have brought relentless focus to ensuring that we have a capital structure designed to weather all cycles and provide the safety and protection that our partners and investors expect. • During 2019, and into the first part of 2020, we continued to transform our balance sheet through the following disciplined capital allocation. In June 2019, we raised $2.4 billion of equity through the largest REIT primary share offering to date, fully funding all of the equity required for the Eldorado transaction and the JACK Cleveland/Thistledown transaction. • In March 2019, we efficiently raised $128 million of net proceeds through our At-the-Market (“ATM”) offering program. In early 2020, we opportunistically raised additional net proceeds of $200 million through the ATM program to ensure funding for our transaction pipeline. • In May 2019, we upsized our line of credit by $600 million, increasing the total capacity to $1.0 billion, enhancing our liquidity profile and extending the maturity from 2022 out to 2024. • In 2019 and early 2020, we significantly reduced our debt cost and improved our maturity ladder through the following initiatives: o In November 2019, we executed our inaugural unsecured notes offering with an upsized offering of $2.25 billion, comprised of $1.250 billion of 7-year notes at 4.25% and $1.0 billion of 10-year notes at 4.625%. The proceeds from this offering were used to retire the secured Caesars Palace Las Vegas CMBS debt, where we replaced a stand-alone secured mortgage that carried a rate of 4.36% with a blended rate of 4.32% on the unsecured notes that were used to retire this secured debt. o In February 2020, we closed on a subsequent $2.5 billion unsecured notes offering, which was comprised of $750 million of 5-year notes at 3.5%, $750 million of 7-year notes at 3.825% and $1.0 billion of 10.5-year notes at 4.125%. A portion of these proceeds were used to redeem in full the outstanding $498.5 million in aggregate principal amount of 8.0% second lien secured notes and the remaining $2.0 billion of the net proceeds were put into escrow pending the consummation of the Eldorado transaction.
Load more

Recommended publications
  • VICI Properties Annual Report 2020
    VICI Properties Annual Report 2020 Form 10-K (NYSE:VICI) Published: February 20th, 2020 PDF generated by stocklight.com UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ________ to _________ Commission file number: 000-55791 ________________________________________________ VICI PROPERTIES INC. (Exact name of registrant as specified in its charter) ________________________________________________ Maryland 81-4177147 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 535 Madison Avenue, 20th Floor New York, New York 10022 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: ( 646) 949-4631 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: Name of each exchange on which Title of each class Trading Symbol registered Common stock, $0.01 par value VICI New York Stock Exchange SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Introduction to 3 Easy High Roller Slots Tricks
    High Limit Slots Tricks (Winning Strategy 6) | MP, OH, OK Slots 2018 PS 35: High Limit Slots Tricks (Winning Strategy 6) | MP, OH, OK Slots 2018 Opening Hello! Today’s episode #35 of the Professor Slots podcast discusses three High Limit Slots Tricks including Winning Strategy 6. Plus, in this episode I’ll be covering the current state of slot machine casino gambling in the great U.S. territory of Northern Mariana Islands as well as the great U.S. states of Ohio and Oklahoma. Thank you for joining me for the Professor Slots podcast show. I’m Jon Friedl and this is the podcast about slot machine casino gambling. It is where I provide knowledge, insights, and tools for helping you improve your slot machine gambling performance. “Jon Friedl from The Professor Slots Blog reveals all of his tips and tricks for thriving in the casino environment. Discover how to assess casinos to pick the best near you, choose winning slot machines, and identify your gambling goals: being entertained, earning comps, winning take-home cash, or combine them. Jon has won 90 taxable jackpots and a luxury car in 9 months of slots play - and made a profit at slots gambling since 2013.” On Last Week’s Episode… In case you missed it, on last week’s episode I went over Winning Strategy 5: Winning Holiday Patterns, explaining how holidays are its own kind of special casino event to be taken advantage of from the slots player’s point of view. Also last week, I reviewed New York, North Carolina, and North Dakota slot machine casino gambling.
    [Show full text]
  • VICI Properties Inc
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number: 001-38372 _________________________ VICI Properties Inc. (Exact name of registrant as specified in its charter) __________________________ Maryland 81-4177147 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 535 Madison Avenue, 20th Floor New York, New York 10022 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (646) 949-4631 __________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common stock, $0.01 par value VICI New York Stock Exchange Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
    [Show full text]
  • VICI Investor Presentation
    INVESTOR PRESENTATION DISCLAIMERS Forward Looking Statements Certain statements in this presentation and that may be made in meetings are forward-looking statements. Forward-looking statements are based on VICI Properties Inc.’s (“VICI” or the “Company”) current plans, expectations and projections about future events and are not guarantees of future performance. These statements can be identified by the fact that they do not relate to strictly historical and current facts and by the use of the words such as "expects", "plans", "opportunities" and similar words and variations thereof. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results, performance and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors including, among others: the impact of changes in general economic conditions, including low consumer confidence, unemployment levels and depressed real estate prices resulting from the severity and duration of any downturn in the U.S. or global economy (including stemming from the COVID-19 pandemic and changes in economic conditions as a result of the COVID-19 pandemic); the Company’s dependence on subsidiaries of Caesars Entertainment, Inc. (“Caesars”), Penn National Gaming, Inc. (“Penn”), Seminole Hard Rock Entertainment, Inc. (“Hard Rock”), Century Casinos, Inc. (“Century Casinos”) and Rock Ohio Ventures LLC (“JACK Entertainment”)
    [Show full text]
  • VICI Properties Inc. Announces Fourth Quarter and Full Year 2020 Results
    NEWS RELEASE VICI Properties Inc. Announces Fourth Quarter and Full Year 2020 Results 2/18/2021 - Establishes Guidance for Full Year 2021 - NEW YORK--(BUSINESS WIRE)-- VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), an experiential real estate investment trust, today reported results for the quarter and year ended December 31, 2020. All per share amounts included herein are on a per diluted share basis unless otherwise stated. Fourth Quarter 2020 Financial and Operating Highlights Total revenues increased 57.0% year-over-year to $373.0 million Net income attributable to common stockholders was $288.0 million, or $0.53 per share AFFO increased 42.5% year-over-year to $251.7 million AFFO per share increased 24.3% to $0.46 Completed the disposition of Bally's Atlantic City Entered into an agreement for The Eastern Band of Cherokee Indians to become the new tenant at the Company's Caesars Southern Indiana property Full Year 2020 Financial and Operating Highlights Total revenues increased 37.0% year-over-year to $1.2 billion Net income attributable to common stockholders was $891.7 million, or $1.75 per share AFFO increased 28.7% year-over-year to $835.8 million 1 AFFO per share increased 10.8% to $1.64 Completed $4.6 billion of acquisitions and investments, including VICI’s rst investment outside of gaming through an $80 million mortgage loan to Chelsea Piers New York Increased quarterly cash dividend by 10.9% Completed an equity oering in which 29,900,000 shares were sold through a forward sale agreement at $22.15
    [Show full text]
  • VICI Investor Presentation
    INVESTOR PRESENTATION DISCLAIMERS Forward Looking Statements Certain statements in this presentation and that may be made in meetings are forward-looking statements. Forward-looking statements are based on VICI Properties Inc.’s (“VICI or the “Company”) current plans, expectations and projections about future events and are not guarantees of future performance. These statements can be identified by the fact that they do not relate to strictly historical and current facts and by the use of the words such as "expects", "plans", "opportunities" and similar words and variations thereof. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results, performance and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors including, among others: the impact of changes in general economic conditions, including low consumer confidence, unemployment levels and depressed real estate prices resulting from the severity and duration of any downturn in the U.S. or global economy (including stemming from the COVID-19 pandemic and changes in economic conditions as a result of the COVID-19 pandemic); the Company’s dependence on subsidiaries of Caesars Entertainment, Inc. (“Caesars”), Penn National Gaming, Inc. (“Penn”), Seminole Hard Rock Entertainment, Inc. (“Hard Rock”), Century Casinos, Inc. (“Century Casinos”) and Rock Ohio Ventures LLC (“JACK Entertainment”)
    [Show full text]
  • VICI Investor Presentation
    INVESTOR PRESENTATION DISCLAIMERS Forward Looking Statements Certain statements in this presentation and that may be made in meetings are forward-looking statements. Forward-looking statements are based on VICI Properties Inc.’s (“VICI or the “Company”) current plans, expectations and projections about future events and are not guarantees of future performance. These statements can be identified by the fact that they do not relate to strictly historical and current facts and by the use of the words such as "expects", "plans", "opportunities" and similar words and variations thereof. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results, performance and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors including, among others: the impact of changes in general economic conditions, including low consumer confidence, unemployment levels and depressed real estate prices resulting from the severity and duration of any downturn in the U.S. or global economy (including stemming from the COVID-19 pandemic and changes in economic conditions as a result of the COVID-19 pandemic); the Company’s dependence on subsidiaries of Caesars Entertainment, Inc. (“Caesars”), Penn National Gaming, Inc. (“Penn”), Seminole Hard Rock Entertainment, Inc. (“Hard Rock”), Century Casinos, Inc. (“Century Casinos”) and Rock Ohio Ventures LLC (“JACK Entertainment”)
    [Show full text]
  • VICI Properties Inc
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 8-K __________________________________________________ CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): July 28, 2021 __________________________________________________ VICI Properties Inc. (Exact Name of Registrant as Specified in its Charter) __________________________________________________ Maryland 001-38372 81-4177147 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 535 Madison Avenue, 20th Floor New York, New York 10022 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (646) 949-4631 Not Applicable (Former Name or Former Address, if Changed Since Last Report) __________________________________________________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common stock, $0.01 par value VICI New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    [Show full text]
  • VICI 3Q'19 Financial Supplement
    SUPPLEMENTAL FINANCIAL & OPERATING DATA T H I R D Q U A R T E R ENDE D SEPTEMBER 30 , 2019 Disclaimers Forward Looking Statements Certain statements in this presentation are forward‐looking statements. Forward‐looking statements are based on VICI Properties Inc.’s (“VICI or the “Company”) current plans, expectations and projections about future events and are not guarantees of future performance. These statements can be identified by the fact that they do not relate to strictly historical and current facts and by the use of the words such as "expects", "plans", "opportunities" and similar words and variations thereof. Although the Company believes that the expectations reflected in such forward‐looking statements are based on reasonable assumptions, its results, performance and achievements could differ materially from those expressed in or by the forward‐looking statements and may be affected by a variety of risks and other factors including, among others: risks that our pending acquisitions of the land and real estate assets of JACK Cleveland Casino and JACK Thistledown Racino (“JACK Cleveland/Thistledown”), the portfolio of three regional casinos (the “Century Portfolio”) from Eldorado Resorts, Inc. (“Eldorado”) and/or the purchase of three Harrah’s-branded casinos (the “MTA Properties”) pursuant to the transactions described in the Master Transaction Agreement entered into by the Company and Eldorado (the “Eldorado Transaction”) may not be consummated on the terms or timeframe described herein, or at all; the ability of the parties
    [Show full text]
  • Name Dba1 Addressline1 City State Zip AAC MGMT LLC
    Name Dba1 AddressLine1 City State Zip AAC MGMT LLC DBA STOCKROOM 601 601 E MAIN ST JACKSON OH 45640 AMBS LLC DBA BLUE AGAVE MARGARITA BAR 1855 S REYNOLDS RD TOLEDO OH 43614 AX USA INC DBA KING WOK RESTAURANT 203 W MCMILLAN ST CINCINNATI OH 45219 AJAS INC DBA BIG ARTS BBQ 2796 STRUBLE RD CINCINNATI OHIO 45251 A J ROCCO COMPANY DBA A J ROCCOS ESPRESSO BAR 812 HURON RD CLEVELAND OHIO 44115 AMBD MAC SHACK 2 LLC 5655 HARRISON AVE CINCINNATI OH 45248 A M A MANAGEMENT CO LTD DBA BARRONS CAFE 13625 AIRPORT HWY SWANTON OHIO 43558 A N J BAR & GRILL INC 522 VERNON ODOM BLVD AKRON OH 44307 AMV HOLDING LLC DBA BRYAN SHELL 911 E HIGH ST BRYAN OH 43506 A N P P INC DBA BEST WESTERN SUITES 1133 EVANS WAY CT COLUMBUS OH 43228 A TAVOLA TRATTORIA LLC DBA A TAVOLA TRATTORIA 1220 VINE ST CINCINNATI OH 45202 TASTE INC DBA VINO VOLO 5300 RIVERSIDE DR CLEVELAND OH 44135 ATM RESTAURANT INC DBA HUNAN GARDEN 1516 COSHOCTON AV MT VERNON OH 43050 ABE WEST CHESTER LLC DBA ANOTHER BROKEN EGG 7701 VOICE OF AMERICA DR WEST CHESTER OH 45069 ABES PARTY HALL LLC 5005 CHATTERTON RD COLUMBUS OH 43232 ACADEMY CLUB LLC 221 BELMONT AV YOUNGSTOWN OHIO 44502 ACW CINCINNATI LLC DBA WAHLBURGERS 580 WALNUT ST CINCINNATI OH 45202 ACW CLEVELAND LLC DBA WAHLBERGERS 2105 ONTARIO ST CLEVELAND OH 44115 ADAM FOODS LLC 1450 BETHEL RD COLUMBUS OHIO 43220 ADVIGILOARE CLUB 501 SPRINGMILL ST MANSFIELD OHIO 44903 ADRENALINE MONKEY LLC 26800 RENAISSANCE PKWY WARRENSVILLE HGTS OH 44128 AG BELLS LLC DBA CANTINA TACO BELL 32377 580 WALNUT STREET CINCINNATI OHIO 45202 A F M INC DBA HARASSMENTS 900
    [Show full text]
  • Preliminary Official Statement Dated April
    PRELIMINARY OFFICIAL STATEMENT DATED APRIL __, 2018 NEW ISSUE - Book Entry Only (See “RATINGS” herein) In the opinion of White Law Offices, PLLC (“Bond Counsel”), under existing laws, regulations, published rulings and judicial decisions of the United States of America, as presently written and applied, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Series 2018 A Bonds is excludable from gross income of the owners thereof for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Series 2018 A Bonds is taken into account in determining the adjusted current earnings of certain corporations for purposes of calculating corporate alternative minimum taxable income for taxable years beginning on or before December 31, 2017. Under the Code, however, such interest is included in the adjusted current earnings of a corporation for purposes of computing the alternative minimum tax. In addition, in the opinion of Bond Counsel, under the Act, the Series 2018 A Bonds, together with the interest on the bonds, shall be exempt from all taxation imposed by the State of West Virginia or by any county, school district, municipality or political subdivision thereof. See “TAX MATTERS” herein. ior ior to registration or qualification $_______________* STATE OF WEST VIRGINIA SCHOOL BUILDING AUTHORITY OF WEST VIRGINIA LOTTERY CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 A Dated: Date of Delivery Due: July 1, as shown on inside cover The Series 2018 A Bonds are issuable only as fully-registered Bonds without coupons, and when initially issued, will be registered to Cede & Co., as nominee of, The Depository Trust Company (“DTC”), New York, New York.
    [Show full text]
  • West Virginia Council for Community and Technical College Education
    WEST VIRGINIA COUNCIL FOR COMMUNITY AND TECHNICAL COLLEGE EDUCATION Conference Call Meeting September 26, 2017 3:30 pm Dial: 1-888-786-7361 Code: 568558 I. Call to Order II. *Higher Education Policy Commission Bond Refunding III. Additional Board Action and Comments IV. Upcoming Meetings Location: New River Community and Technical College Beckley, WV Date: October 12, 2017 Time: 9:30 a.m. V. Adjournment * Denotes an item requiring action/approval 1 West Virginia Community and Technical College Council Meeting of September 26, 2017 ITEM: Higher Education Policy Commission Bond Refunding INSTITUTIONS: All RECOMMENDED RESOLUTION: Resolved, That the West Virginia Council for Community and Technical College Education authorizes the West Virginia Higher Education Policy Commission to refund all of the outstanding $78,295,000 State of West Virginia Higher Education Policy Commission Community and Technical College Capital Improvement Revenue Bonds, 2009 Series A; and in connection therewith, issue up to $82,000,000 aggregate principal amount of the State of West Virginia Higher Education Policy Commission Community and Technical College Capital Improvement Refunding Revenue Bonds, Series 2017. Be it Further Resolved, That the Council authorizes the taking of all other actions related to such refunding, and if the final agreement requires additional conditions, they may be presented to the Chancellor, who is hereby delegated the authority to approve the final documents. STAFF MEMBER: Ed Magee BACKGROUND: In light of current bond market interest rates, it is advantageous for the Higher Education Policy Commission to refund the Series 2009 bonds. These bonds are paid from lottery proceeds. If the proposed refunding is approved, the annual debt service will be slightly reduced.
    [Show full text]