Vornado Realty Trust taps preferred primary market for $300 million; preferreds mixed

By Cristal Cody

Tupelo, Miss., Dec. 4 – Vornado Realty Trust tapped the preferred stock market on Monday with a $300 million offering.

The preferreds were freed to trade over the counter under the temporary symbol “VNNDP.”

In the broader market, preferred stocks remained mixed over the session.

The Wells Fargo Hybrid and Preferred Securities index improved 6 basis points.

The U.S. iShares Preferred Stock ETF fell 8 bps.

In trading, Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) fell 6 cents to $25.56.

The preferred shares are not expected to be called at the first optional call date on Dec. 15, according to market sources.

Vornado sells preferreds

Vornado Realty Trust priced $300 million of $25-par 5.25% split-rated series M cumulative redeemable perpetual preferred stock (Baa3/BBB-/BB+) on Monday, according to an FWP filed with the Securities and Exchange Commission.

The company sold 12 million shares at $25.00 per share. The deal has an over-allotment option of 1.8 million shares.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The company plans to list the preferreds on the New York Stock Exchange under the ticker symbol “VNOPrM.”

Vornado is an equity real estate investment trust based in New York.

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