Vornado Completes $525 Million Refinancing of One Park Avenue

Rhea-AI Summary

Vornado Realty Trust (NYSE: VNO) has successfully refinanced One Park Avenue, a 943,000 square foot Manhattan office building, with a $525 million loan. This new loan has a lower interest rate of LIBOR plus 1.107% compared to the previous loan's LIBOR plus 1.75%. Vornado's share of the net proceeds is approximately $105 million, providing enhanced liquidity. The refinancing is set to mature in February 2026, extending the term significantly beyond the prior maturation date in March 2021.

Positive

• Refinanced $525 million loan for One Park Avenue at lower interest rate of LIBOR plus 1.107%, improving financial terms.
• Vornado's share of net proceeds of approximately $105 million enhances liquidity.

Negative

• Ongoing adverse effects of the COVID-19 pandemic may continue to impact financial condition and operations.

NEW YORK, Feb. 26, 2021 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) announced today that its 55% owned joint venture has completed a $525 million refinancing of One Park Avenue, a 943,000 square foot Manhattan office building. The interest only loan carries a rate of LIBOR plus 1.107% (currently 1.222%) and matures in February 2026, as fully extended.

The loan replaces the previous $300 million loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021. Vornado’s share of the net proceeds was approximately $105 million.

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

CONTACT

Michael Franco
(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, 2020. Such factors include, among 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 COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it has had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 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 COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2020.

FAQ

What is the refinancing amount for One Park Avenue by Vornado Realty Trust?

Vornado Realty Trust has refinanced One Park Avenue for $525 million.

What is the interest rate on the new loan for One Park Avenue?

The new loan carries an interest rate of LIBOR plus 1.107%.

When does the refinancing for One Park Avenue mature?

The refinancing for One Park Avenue matures in February 2026.

How much liquidity did Vornado gain from the refinancing?

Vornado's share of the net proceeds from the refinancing is approximately $105 million.

What risks does Vornado Realty Trust face following the refinancing?

Vornado Realty Trust faces ongoing risks associated with the adverse effects of the COVID-19 pandemic.