Vornado Offers Unsecured Notes - Analyst Blog

Vornado Realty Trust (VNO), one of the largest real estate investment trusts (REITs) in the U.S., has recently announced an offering of $500 million aggregate principal amount of 4.25% senior unsecured notes due April 1, 2015. The debt offering is expected to raise net proceeds of approximately $496 million, which would be primarily used for general corporate purposes. 

Vornado has priced the notes at 99.83% of the face amount to yield 4.29%. Banc of America Securities LLC, the investment-banking subsidiary of Bank of America Corporation (BAC), Citigroup Global Markets Inc., the brokerage and securities arm of banking behemoth Citigroup Inc. (C), J.P. Morgan Securities Inc., the U.S. investment banking arm of financial services giant JPMorgan Chase & Co. (JPM), and UBS Securities LLC, the investment banking division of UBS AG (UBS) acted as joint book-running managers for the offering.
 
Vornado is engaged in acquiring, owning and leasing office properties, retail space and temperature-controlled logistics and refrigerated warehouses. Besides its properties, the company also has investments in other REITs, industrial buildings and Toys ‘R’ Us.
 
Vornado has a strong asset portfolio in two of the best long-term office markets in the U.S. – the New York City and Washington DC. The company also has a healthy balance sheet and adequate liquidity. Consequently, Vornado is better placed than most of its peers to withstand the prolonged recession.
Read the full analyst report on "VNO"
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