Vornado Completes $500 Million Refinancing of PENN11

Rhea-AI Summary

Vornado Realty Trust (NYSE: VNO) has successfully completed a $500 million refinancing of PENN11, a 1.2 million square foot Manhattan office building. This new interest-only loan, bearing a rate of LIBOR plus 2.75% (currently 2.90%), matures in October 2025. It replaces a previous $450 million loan with a fixed interest rate of 3.95%, which was set to mature in December 2020. The refinancing reflects Vornado's strategy to enhance its financial flexibility.

Positive

• Secured a $500 million refinancing, improving financial flexibility.
• Lowered interest rate compared to the previous loan (from 3.95% to LIBOR + 2.75%).

Negative

• None.

NEW YORK, Oct. 16, 2020 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) announced today that it has completed a $500 million refinancing of PENN11, a 1.2 million square foot Manhattan office building. The interest-only loan carries a rate of LIBOR plus 2.75% (currently 2.90%) and matures in October 2025, as fully extended.

The loan replaces the previous $450 million loan that bore interest at a fixed rate of 3.95% and was scheduled to mature in December 2020.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

CONTACT:
JOSEPH MACNOW
(212) 894-7000

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2019. And “Item 1A. Risk Factors” in Part II of our Quarterly Report on Form 10Q for the quarterly period ended June 30, 2020. Such factors include, amount others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Currently, one of the most significant factors is the ongoing adverse effect of the COVID19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it will have on our tenants, the global, national, regional and local economics and financial markets and the real estate market in general. The extent of the impact of the COVID19 pandemic will depend on future developments, including the duration of the pandemic, which are highly uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID19 pandemic will heighten many of the risks identified in “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10K for the year ended December 31, 2019, as well as the risks set forth in “Item 1A. Risk Factors in Part II of our Quarterly Report on Form 10Q for the quarterly period ended June 30, 2020.

FAQ

What is Vornado Realty Trust's recent refinancing amount for PENN11?

Vornado Realty Trust completed a $500 million refinancing for PENN11.

What is the interest rate on the new loan for PENN11?

The new loan for PENN11 carries an interest rate of LIBOR plus 2.75%.

When does the new loan for Vornado's PENN11 mature?

The new loan matures in October 2025.

How does the new loan's interest rate compare to the previous loan?

The previous loan had a fixed interest rate of 3.95%, which is higher than the new loan's rate.

What is Vornado Realty Trust's stock symbol?

The stock symbol for Vornado Realty Trust is VNO.