Vornado Completes $3.2 Billion of Refinancings
July 05 2022 - 5:05PM
Vornado Realty Trust (NYSE:VNO) announced today that it has
recently completed four refinancings totaling $3.2 billion.
On June 30, 2022, Vornado Realty L.P. extended
one of its two unsecured revolving credit facilities from March
2024 to December 2027, as fully extended. The $1.25 billion
extended facility bears interest at a rate of SOFR plus 1.15%
(currently 2.68%). The facility fee is 0.25%. Vornado’s other
$1.25 billion revolving credit facility matures in
April 2026 (as fully extended) and bears interest at a rate of
SOFR plus 1.19%. The facility fee is 0.25%.
On June 30, 2022, Vornado extended the maturity
date of its $800 million unsecured term loan from
February 2024 to December 2027. The extended loan bears
interest at a rate of SOFR plus 1.30% (currently 2.83%). Under an
existing swap agreement, $750 million of the $800 million loan has
been swapped to a fixed rate of 4.05% through October 2023.
On June 28, 2022, Vornado completed a
$700 million refinancing of 770 Broadway, a 1.2 million
square foot Class A Manhattan office building. The interest only
loan bears a rate of SOFR plus 2.25% (currently 3.75%) and matures
in July 2027, as fully extended. Upon the achievement of
certain conditions within the first 18 months of closing, the
interest rate will decrease to SOFR plus 1.75% and Vornado
will have the option to draw an additional $300 million of
proceeds. $350 million of this loan was swapped to a fixed rate of
5.11% until the July 2027 maturity. The loan replaces the previous
$700 million loan that bore interest at SOFR plus 1.86% and
was scheduled to mature in July 2022.
On June 15, 2022, Vornado completed a $480
million refinancing of 100 West 33rd Street, a 1.1 million square
foot property comprised of 859,000 square feet of office space and
255,000 square feet of retail space. The interest only loan bears a
rate of SOFR plus 1.65% (currently 3.09%) through March 2024,
increasing to SOFR plus 1.85% thereafter. The loan matures in June
2027, with two one-year extension options subject to debt service
coverage ratio and loan to value tests. The loan replaces the
previous $580 million loan that bore interest at LIBOR plus 1.55%
and was scheduled to mature in April 2024.
The joint lead arrangers and joint bookrunners
for the revolving credit facility and unsecured term loan are
JPMorgan Chase Bank, N.A., BofA Securities, Inc., PNC Capital
Markets LLC, U.S. Bank National Association, and Wells Fargo
Securities LLC. JPMorgan Chase Bank, N.A. serves as Administrative
Agent and J.P. Morgan Securities LLC serves as Sustainability
Structuring Agent. Bank of America, N.A., PNC Bank, National
Association, U.S. Bank National Association and Wells Fargo Bank,
N.A. serve as Co-Syndication Agents. The Bank of East Asia,
Limited, New York Branch, BMO Capital Markets Corp., Citigroup
Global Markets Inc., Deutsche Bank Securities, Inc., Goldman Sachs
Bank USA, M&T Bank, Mizuho Bank, Ltd., Morgan Stanley Senior
Funding, Inc., Societe Generale, and TD Securities (USA) LLC.,
serve as joint lead arrangers.
Vornado Realty Trust is a fully-integrated
equity real estate investment trust.
CONTACT
Thomas J. Sanelli(212) 894-7000
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 the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. For a
discussion of factors that could materially affect the outcome of
our forward-looking statements and our future results and financial
condition, see “Risk Factors” in Part I, Item 1A, of our Annual
Report on Form 10-K for the year ended December 31, 2021. Such
factors include, among others, risks associated with the
performance of the Company’s properties and general competitive
factors. Currently, one of the most significant factors is the
ongoing adverse effect of the COVID-19 pandemic on our business,
financial condition, results of operations, cash flows, operating
performance and the effect it has had and may continue to have on
our tenants, the global, national, regional and local economies and
financial markets and the real estate market in general. The extent
of the impact of the COVID-19 pandemic will continue to depend on
future developments, including the duration of the pandemic,
current and future variants, the efficacy and durability of
vaccines against the variants and the potential for increased
government restrictions, which continue to be uncertain at this
time but that impact could be material. Moreover, you are cautioned
that the COVID-19 pandemic will heighten many of the risks
identified in "Item 1A. Risk Factors" in Part I of our Annual
Report on Form 10-K for the year ended December 31, 2021.
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