Vornado Prices $500M 5.75% Notes Due 2033 and Acquires $141M 3 East 54th Street Site
Vornado priced $500M of 5.75% senior notes due 2033 at 99.824% to yield 5.78%, raising $494M to retire $400M of 2026 notes and general corporate uses at Jan.14 close. It also paid $141M for 3 East 54th Street, an 18,400 sq ft Manhattan site zoned for 232,500 buildable sq ft.
1. Vornado Prices $500 Million of 7-Year Bonds
Vornado Realty Trust announced the pricing of a $500 million offering of 5.75% senior unsecured notes due February 1, 2033. The notes were sold at 99.824% of face value, resulting in a yield of 5.78% and net proceeds of approximately $494 million. Vornado plans to use $400 million of the proceeds to repay its unsecured notes maturing June 1, 2026, with the remaining funds allocated for general corporate purposes. Interest will be payable semiannually on February 1 and August 1, beginning August 1, 2026. The transaction is expected to close on January 14, 2026, subject to customary closing conditions, and was managed by a syndicate led by BofA Securities, PNC Capital Markets and U.S. Bancorp Investments among others.
2. Vornado Acquires Prime Plaza District Development Site
Vornado Realty Trust has acquired 3 East 54th Street in Manhattan’s Plaza District for $141 million. The demolition-ready site spans 18,400 square feet between Fifth and Madison Avenues, adjacent to the St. Regis Hotel, and is zoned to support approximately 232,500 buildable square feet. Vornado credited a $107 million mortgage previously held on the property toward the purchase price. This acquisition augments Vornado’s existing portfolio in the Plaza District and Park Avenue corridor, positioning the company to develop a high-rise project in one of Manhattan’s most prestigious addresses.