Vornado calls $400 million 5% notes due 2022 at 105.51 on March 31

By Susanna Moon

Chicago, March 4 – Vornado Realty LP said it has exercised the call option on its $400 million principal amount of 5% senior notes due Jan. 15, 2022.

The notes will be redeemed on March 31 at a redemption price of about 105.51% of par plus accrued interest, according to a press release.

Vornado Realty Trust sold its 18,468,969 common shares for net proceeds of about $167.7 million, which will result in a financial statement gain of about $16.1 million to be recognized in the first quarter of 2019.

Vornado said it also sold the 5,717,184 common shares of Urban Edge Properties that it owns for net proceeds of about $108.5 million, which will mean in a financial statement gain of about $62.4 million also to be recorded in the first quarter of 2019.

The company said will incur a charge of about $23 million in the first quarter of 2019 for the prepayment and write off of unamortized financing costs of the 2022 notes.

The issuer is a real estate investment trust is based in New York.

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