Vornado Realty L.P. has successfully priced a $500 million public offering of 5.75% senior unsecured notes due February 1, 2033. The notes were sold at 99.824% of par to yield 5.78%, reflecting investor demand for long‐duration corporate debt in a rising rate environment. Interest will be paid semiannually on February 1 and August 1, beginning August 1, 2026. The deal was led by a syndicate of 17 joint book‐running managers, including BofA Securities, J.P. Morgan Securities and Goldman Sachs, supported by an additional five co‐managers, ensuring broad distribution across institutional accounts.

Net proceeds of approximately $494 million will be deployed primarily to retire $400 million of unsecured notes maturing June 1, 2026, effectively extending debt maturities by over six years. The remaining $94 million will fund general corporate purposes, enhancing Vornado’s liquidity position ahead of key development milestones. Prior to retirement of the near‐term notes, unallocated proceeds may be placed in cash or liquid securities, providing temporary balance‐sheet flexibility and preserving optionality for opportunistic refinancing or strategic investments.

By replacing shorter‐dated debt with seven‐year notes, Vornado reduces near‐term refinancing risk and locks in fixed‐rate funding at a spread of roughly 260 basis points over Treasuries. This shift is expected to modestly improve interest coverage ratios, given the anticipated stabilization of rental income from its Manhattan office and retail portfolio. Investors will monitor upcoming quarterly filings for trends in leverage metrics and covenant headroom, particularly as the firm advances its 3 East 54th Street development and navigates broader market volatility in the real estate sector.