Nashville, March 23 - Vornado Realty Trust sold $500 million of 20-year exchangeable senior debentures with a 3.875% coupon and 30% initial conversion premium via sole bookrunner Citigroup Global Markets Inc., which reoffered the issue at 97.
The deal was reoffered wide of price talk of 98 to 98.5.
New York-based Vornado owns office properties totaling 27.6 million square feet in the New York City metropolitan area, primarily Manhattan, and prime spots in the heart of Washington, D.C. and northern Virginia areas. In addition, the company owns retail properties in seven states and Puerto Rico and a 47.6% interest in Americold Realty Trust, which owns and operates 88 cold storage warehouses nationwide.
Proceeds will be used for working capital and other corporate purposes, Vornado said.
Vornado is part of the consortium of bidders, along with Kolberg Kravis Roberts and Bain Capital, to buy Toys 'R' Us Inc. in an estimated $6.6 billion deal.
Terms of the deal are:
| Issuer: | Vornado Realty Trust
|
| Issue: | Exchangeable senior debentures
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Reoffer price: | 97
|
| Conversion premium: | 30%
|
| Exchange price: | $91.25
|
| Exchange ratio: | 10.9589
|
| Contingent conversion: | No
|
| Contingent payment: | No
|
| Dividend protection: | Yes, via exchange ratio adjustment for common dividend increases beyond 5% per year
|
| Takeover protection: | Yes
|
| Call: | Non-callable for 7 years
|
| Put: | In years 7, 10 and 15
|
| Rating: | Fitch: BBB
|
| Price talk: | Reoffer price of 98 to 98.5
|
| Pricing date: | March 23, before market open
|
| Settlement date: | March 29
|
| Distribution: | Registered
|
|
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