By Stephanie N. Rotondo
Portland, Ore., April 14 - Vornado Realty Trust priced $175 million of 6.875% series J cumulative redeemable preferred stock (Baa3/BBB-).
The deal was originally announced on Wednesday, and the company finalized the terms in an FWP filed with the Securities and Exchange Commission on Thursday.
The New York-based real estate investment trust is selling 7 million preferreds at $25 each.
The offering also includes an over-allotment option for 1.05 million shares.
Dividends are payable quarterly on the 1st of January, April, July and October.
The preferreds are not redeemable until April 20, 2016. After that, the company can choose to call them at any time for $25 each plus accrued dividends.
There is no stated maturity.
Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the co-managers.
Proceeds from the sale will be contributed to Vornado's operating partnership in exchange for preferred units. The operating partnership will use the funds for general business purposes, including the redemption or repurchase of preferred stock and units.
Vornado plans to apply to list the preferreds on the New York Stock Exchange.
| Issuer: | Vornado Realty Trust
|
| Securities: | Series J cumulative redeemable preferred stock
|
| Amount: | $175 million
|
| Shares: | 7 million
|
| Greenshoe: | $26.25 million, or 1.05 million shares
|
| Price: | $25
|
| Dividends: | 6.875%, payable quarterly
|
| Call option: | After April 20, 2016
|
| Bookrunners: | Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBC Capital Markets LLC
|
| Pricing date: | April 14
|
| Settlement date: | April 20
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
© 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.
