Shares of bowling center chain Bowlero (NYSE: BOWL) popped on Friday after the company completed a massive sale-leaseback deal with real estate investment trust (REIT) Vici Properties (NYSE: VICI). The deal puts tons of cash in Bowlero's back pocket -- a company with large needs for capital. As of 10 a.m. ET, Bowlero stock was up 8% but had been up 10% earlier in the trading session. For its part, Vici Properties stock was largely unchanged.

Bowlero sold 38 bowling centers to Vici Properties for a whopping $432.9 million. The company will now lease these properties back from Vici Properties. For Bowlero, it unlocks the value trapped in its properties, giving it greater access to capital. For Vici Properties, it gets a stable tenant that it can grow with (more on that in a moment).

At the end of its fiscal 2023, which ended on July 2, Bowlero only owned 42 of its bowling centers. The rest were leased. Since the end of its fiscal 2023, Bowlero completed its acquisition of bowling company Lucky Strike, which controlled 14 properties. 

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Source Fool.com