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Vornado Completes $1.2 Billion Cash-Out Refinancing of SF Tower Co-Owned by Trump

05/10/2021 13:44

05:31 PM EDT, 05/10/2021 (MT Newswires) -- Vornado Realty Trust (VNO) said it has completed the $1.2 billion refinancing of a 1.8 million square foot office tower in San Francisco.

The company said its interest-only loan on the "trophy office campus" at 555 California Street bears a rate of LIBOR plus 1.93% in years one through five, LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven.

The company swapped its share of the loan, which matures in May 2028, for the first three years to a fixed rate of 2.26%, according to a statement. The loan replaces a $533 million debt with interest at a fixed rate of 5.10% and maturity in September 2021.

Vornado said its share of the net refinancing proceeds on the building in which it owns a 70% stake came to $454 million. Former President Donald Trump owns the other 30%, Bloomberg News has reported.

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