Benzinga | Sep 15, 2021 05:06PM EDT

VICI Properties, ClubCorp Holdings Report Strategic Arrangement To Grow BigShots Orion: VICI To Provide Up To $80M Of Mortgage Financing For Construction Of Up To 5 New BigShots Golf Facilities In US

VICI Properties Inc. (NYSE:VICI) ("VICI Properties" or "VICI") and ClubCorp Holdings, Inc. ("ClubCorp") (an Apollo Global Management fund portfolio company) announced today that they have entered into a strategic arrangement to grow BigShots Orion, LLC ("BigShots Golf"), whereby VICI Properties may provide up to $80.0 million of mortgage financing for the construction of up to five new BigShots Golf(tm) facilities throughout the United States, subject to definitive documentation.

John Payne, President and Chief Operating Officer of VICI Properties, said, "We are excited to partner with ClubCorp, the leading operator of private golf and country clubs in the United States, to help grow their BigShots Golf business. ClubCorp's proven experience creating dynamic member and guest experiences throughout their country club, city and stadium club locations is highly complementary to the BigShots Golf platform and we're thrilled to serve as a financing partner. This arrangement enables VICI to continue expanding into attractive experiential sectors and new geographic markets in a prudent manner while securing additional long-term growth opportunities for VICI."

"We are ecstatic to partner with VICI and expand the BigShots Golf brand to new markets across the country" said ClubCorp CEO David Pillsbury. "The golf entertainment industry continues to rapidly grow in popularity as people discover the magic of golf in a fun, non-intimidating environment. BigShots Golf is leading the way with new innovative technology, elevated dining and fun for the whole family. Our partnership with VICI will allow us to continue pursuing new market opportunities and bring the BigShots Golf experience to more communities."

As part of the non-binding arrangement, VICI Properties will have a call right to acquire the real estate assets associated with any financed BigShots Golf facility in a sale leaseback transaction. In addition, VICI Properties will have a right of first offer on any additional mortgage, mezzanine, preferred equity, or other similar financing that is treated as debt to be obtained by BigShots Golf (or any of its affiliates) for any multisite financing related to the development of BigShots Golf's extensive existing and growing pipeline of facilities. Pursuant to a non-binding letter agreement, the terms and conditions of any transaction between the parties will be set forth in definitive documentation.