Vornado Prices $500M 5.75% Notes and Acquires $141M Plaza District Site
Vornado priced $500M of 5.75% senior unsecured notes due February 1, 2033 at 99.824% to yield 5.78%, with $494M net proceeds used to retire $400M of 2026 notes. The company acquired 3 East 54th Street in Manhattan’s Plaza District for $141M, an 18,400-sq-ft site zoned for 232,500 buildable sq ft.
1. Vornado Realty L.P. Prices $500 Million 7-Year Senior Unsecured Notes
On January 7, 2026, Vornado Realty L.P. priced a public offering of $500 million aggregate principal amount of 5.75% senior unsecured notes due February 1, 2033. The notes were issued at 99.824% of face value, representing a yield of 5.78%, with interest payable semiannually on February 1 and August 1, beginning on August 1, 2026.
2. Net Proceeds of $494 Million to Refinance 2026 Notes and Fund Corporate Purposes
The transaction is expected to generate net proceeds of approximately $494 million. Of this amount, $400 million will be used to repay outstanding unsecured notes maturing on June 1, 2026. The remaining $94 million will be allocated for general corporate purposes, with any funds held prior to repayment invested in cash, cash equivalents or other liquid marketable investments. The closing is scheduled for January 14, 2026, subject to customary conditions.
3. Diverse Syndicate Led by Major Global and Regional Banks
The offering was managed by a syndicate of leading investment banks and regional firms. Joint book-running managers include BofA Securities, PNC Capital Markets, U.S. Bancorp Investments, Wells Fargo Securities, BMO Capital Markets, J.P. Morgan Securities, BNY Mellon Capital Markets, Citigroup Global Markets, Citizens JMP Securities, Deutsche Bank Securities, Goldman Sachs, M&T Securities, Mizuho Securities USA and Morgan Stanley. Co-managers comprised Cabrera Capital Markets, ING Financial Markets, Loop Capital Markets, Standard Chartered Bank and Academy Securities.