Sale Leaseback of 38 Bowling Entertainment Centers with Bowlero Corp.
TRANSACTION OVERVIEW
On October 19, 2023, VICI completed the acquisition of the real estate assets of 38 bowling entertainment
centers (the "Bowlero Portfolio") from Bowlero Corp. ("Bowlero") in a sale leaseback transaction and entered
into a triple net master lease with Bowlero
Bowlero Master Lease - Summary Terms
Tenant
Initial Annual Cash Rent
Term
Contractual Rent Escalation
Guarantor
Right of First Offer
("ROFO")
Consideration
One or more wholly owned
subsidiaries of Bowlero Corp.
$31.6MM
Initial lease term of 25 years with
six 5-year renewal options
Greater of 2.0% or CPI
(subject to a 2.5% cap)
Bowlero Corp. (NYSE: BOWL)
Right of first offer on the sale leaseback of current or
future Bowlero real estate for the next 8 years
Units in a newly formed VICI subsidiary issued to
Bowlero, cash on hand, and partial settlement of
outstanding forward equity sale agreements
$432.9MM
Bowlero Portfolio
Purchase Price
7.3%
Acquisition Cap Rate
3.2x
Bowlero FY23 Pro Forma
Corporate Level Rent Coverage (1)
Source: Bowlero FY 2023 public filings. Refer to Bowlero's public filings for additional information with respect to Bowlero's non-GAAP financial measures.
(1) Represents corporate level rent coverage for Bowlero Corp., including rent from the Bowlero Master Lease. See page 13 for more information and reconciliations of this metric. Bowlero may calculate Adj. EBITDA
differently from VICI and other companies and accordingly, Bowlero's Adj. EBITDA may not be comparable to Adj. EBITDA reported by VICI or other companies.
VICI
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