Vornado to bring up to $350 million of series K cumulative preferreds

By Stephanie N. Rotondo

Phoenix, July 11 - Vornado Realty Trust intends to issue up to $350 million of new series K cumulative redeemable perpetual preferred stock, a trader said Wednesday.

The deal was initially expected to be about $100 million.

Price talk was originally around 5.875%, the trader added, but it was later revised to 5.7%.

The issue could price as early as Wednesday.

In a prospectus filed with the Securities and Exchange Commission, the New York-based real estate investment trust said dividends on the preferreds will be payable on the first day of January, April, July and October.

The preferreds become redeemable in July 2017.

The company plans to list the preferreds on the New York Stock Exchange.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, Wells Fargo Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunning managers. The co-managers are Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC.

Proceeds from the sale will be contributed to the trust's operating partnership in exchange for preferred units. The operating partnership will then use the funds for general business purposes, which may include the redemption or repurchase of other preferred stock and units.

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