By Kenneth Lim
Boston, Nov. 15 - Vornado Realty Trust on Wednesday priced $1 billion of 20-year convertible senior debentures at talk, at a coupon of 3.625% and an initial conversion premium of 30%, and at a reoffered price of 97.5.
The terms for the overnight deal were set at price talk.
There is an over-allotment option for a further $150 million.
Banc of America Securities LLC was the bookrunner of the registered off-the-shelf offering.
The debentures are non-callable for the first five years and may be put in years five, 10 and 15.
They have dividend and takeover protection.
The debentures are guaranteed by Vornado Realty LP, the listed company's operating partnership.
Vornado, a New York-based real estate investment trust with mainly retail, office and industrial properties, said the proceeds of the deal will be used for working capital and other corporate purposes.
| Issuer: | Vornada Realty Trust
|
| Issue: | Convertible senior debentures
|
| Bookrunner: | Banc of America Securities LLC
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 3.625%
|
| Price: | Par, reoffered at 97.5
|
| Yield: | 3.625%
|
| Conversion premium: | 30%
|
| Conversion price: | $153.45
|
| Conversion ratio: | 6.5168
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 15, 2011
|
| Puts: | Nov. 15, 2011; Nov. 15, 2016; Nov. 15, 2021
|
| Price talk: | 3.625%, up 30%, reoffered at 97.5
|
| Pricing date: | Nov. 15, before the open
|
| Guarantees: | Vornado Realty LP
|
| Distribution: | Registered
|
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