By Ronda Fears
Memphis, March 22 - Vornado Realty Trust priced $1.4 billion of 20-year convertible senior debentures on Thursday before the market opened with a coupon of 2.85% and initial conversion premium of 30%. The issue was reoffered at 97.5, according to market sources, which would be cheaper than price talk for a reoffer price of 98 to 98.5.
There is an over-allotment option for a further $210 million.
J.P. Morgan, Citigroup Global Markets, Deutsche Bank and Lehman Brothers are joint book-runners of the registered offering.
The notes are non-callable for five years and may be put in years five, 10 and 15.
The convertibles have change-of-control protection.
New York-based Vornado, a diversified real estate investment trust, said proceeds would be used for working capital and other corporate purposes.
| Issuer: | Vornado Realty Trust
|
| Issue: | Convertible senior debentures
|
| Bookrunners: | J.P. Morgan, Citigroup Global Markets, Deutsche Bank and Lehman Brothers
|
| Amount: | $1.4 billion
|
| Greenshoe: | $210 million
|
| Maturity: | 2027
|
| Coupon: | 2.85%
|
| Price: | Par; reoffered at 97.5
|
| Exchange premium: | 30%
|
| Exchange price: | $162.461
|
| Exchange ratio: | 6.1553
|
| Contingent exchange: | No
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Cash settlement: | Yes
|
| Call protection: | Non-callable for five years
|
| Puts: | In years five, 10 and 15
|
| Price talk: | 2.85%, up 30%
|
| Reoffer price of 98-98.5
|
| Pricing date: | March 22, before the open
|
| Settlement date: | March 27
|
| Distribution: | Registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
