By Stephanie N. Rotondo and Andrea Heisinger
Phoenix, Jan. 17 - Vornado Realty Trust priced $300 million of 5.4% $25-par series L perpetual cumulative redeemable preferred stock on Thursday, according to a market source.
Dividends will be payable quarterly on Jan. 1, April 1, July 1 and Oct. 1, beginning on April 1, 2013.
There is a call option on or after Jan. 25, 2018 at par plus accrued dividends.
Bookrunners are Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.
Proceeds will be contributed to the company's operating partnership in exchange for preferred units. The operating partnership will use proceeds for general corporate purposes, including payment for the redemption or repurchase price for preferred stock and units.
Vornado, a real estate investment trust based in New York City, will apply to list the preferreds on the New York Stock Exchange.
| Issuer: | Vornado Realty Trust
|
| Securities: | Series L cumulative redeemable preferred stock
|
| Amount: | $300 million, or 12 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies & Co. Inc., J.P. Morgan Securities LLC
|
| Dividend: | 5.4%
|
| Price: | Par of $25.00
|
| Yield: | 5.4%
|
| Talk: | Initially around 5.5%
|
| Call options: | On or after Jan. 25, 2018 at par plus accrued dividends
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 25
|
| Cusip: | 929042844
|
© 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.
