Vornado Realty Trust's operating partnership priced a $450 million offering of 3.50% senior unsecured notes due Jan. 15, 2025, at 99.596% of the notes' face amount, to yield 3.565%.
Interest on the notes will be payable semiannually every Jan. 15 and July 15, starting July 15, 2018.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Jefferies LLC were the joint book-running managers for the debt offering, which should close Dec. 27.
The company also called for the redemption of all its $450 million of 2.50% senior unsecured notes due June 30, 2019, with redemption scheduled for Dec. 27 at a redemption price of about 100.82% of the principal amount plus accrued interest. Vornado noted that it will incur a fourth-quarter charge of roughly $5.3 million regarding the prepayment and write-off of unamortized financing costs of the notes.
The company also scheduled the redemption of the remaining $120 million of its 6.625% series I cumulative redeemable preferred shares for Jan. 11, 2018, at a redemption price of $25 per share plus accrued and unpaid dividends. Vornado will incur a charge of $3.4 million in the 2018 first quarter from the write-off of issuance costs relating to the shares being redeemed.
