Vornado Announces Public Offering of $450 Million 3.5% 7-Year Senior Unsecured Notes due 2025 and Calls for Redemption its $4...
December 13 2017 - 6:41PM
VORNADO REALTY TRUST (NYSE:VNO) announced that Vornado Realty L.P.,
the operating partnership through which Vornado Realty Trust
conducts its business, has priced an offering of $450 million
aggregate principal amount of 3.50% senior unsecured notes due
January 15, 2025. Interest on the notes will be payable
semi-annually on January 15 and July 15, commencing July 15,
2018. The notes were priced at 99.596% of their face amount
to yield 3.565%. Subject to customary closing conditions, the
offering is expected to close on December 27, 2017.
Citigroup Global Markets Inc., Deutsche Bank
Securities Inc., J.P. Morgan Securities LLC and Jefferies LLC acted
as joint book-running managers.
The offering is being made under Vornado Realty
L.P.’s shelf registration statement filed with the Securities and
Exchange Commission on April 8, 2015 and only by means of a
prospectus supplement, dated December 12, 2017, and accompanying
prospectus, dated April 8, 2015. A copy of the prospectus
supplement and accompanying prospectus relating to the offering may
be obtained from Citigroup Global Markets Inc., c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, New York
11717, or by calling 1-800-831-9146 or email at
prospectus@citi.com; Deutsche Bank Securities Inc., 60 Wall Street,
New York, New York 10005, Attn: Prospectus Group, or by calling
1-800-503-4611; J.P. Morgan Securities LLC, 383 Madison Avenue, New
York, New York 10179, Attention: Investment Grade Syndicate Desk,
or by calling 1-212-834-4533, or by faxing 1-212-834-6081; or
Jefferies LLC, 520 Madison Avenue, New York, New York 10022,
Attention: Debt Capital Markets, or by calling
1-877-877-0696. This press release does not constitute an
offer to sell or the solicitation of an offer to buy these
securities, nor will there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful.
Vornado Realty L.P. has called for redemption
all of its $450 million aggregate principal amount of 2.50% senior
unsecured notes due 2019. The notes which were scheduled to
mature on June 30, 2019, will be redeemed on December 27, 2017 at a
redemption price of approximately 100.82% of the principal amount
plus accrued interest. Vornado will incur a charge of
approximately $5.3 million in the fourth quarter of 2017 relating
to the prepayment and write off of unamortized financing costs of
the 2019 notes.
Vornado has also called for redemption the
remaining $120 million of its 6.625% Series I Cumulative Redeemable
Preferred Shares on January 11, 2018 at a redemption price of $25
per share plus accrued and unpaid dividends through the date of
redemption. American Stock Transfer & Trust Company is
serving as redemption agent. Vornado will incur a charge of
$3.4 million in the first quarter of 2018 from the write off of
issuance costs relating to the shares being redeemed.
Vornado Realty Trust is a fully-integrated
equity real estate investment trust. Certain statements
contained herein may constitute “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Vornado Realty Trust
or Vornado Realty L.P. to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among
others, risks associated with the timing of and costs associated
with property improvements, financing commitments and general
competitive factors as well as risks associated with the
transactions described above as described in the above-referenced
prospectus supplement under “Risk Factors” and those described in
Vornado Realty L.P.’s Annual Report on Form 10-K for the year ended
December 31, 2016, under Item 1.A, Risk Factors, copies of which
may be obtained at the website of the Securities and Exchange
Commission at www.sec.gov.
CONTACT:
Joseph Macnow(212) 894-7000
Vornado Realty (NYSE:VNO)
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