News & Analysis

HSBC leads $575m refinance of Two Penn Plaza

A joint venture between HSBC, Landesbank Baden-Württemberg, Bank of China Limited, DekaBank and Union Bank have provided Vornado Realty Trust with $575m for the refinancing of Two Penn Plaza. The real estate investment trust announced the financing package for the 1.6m sq ft Manhattan office building this week. The loan, which carries a margin of 165 basis points over LIBOR, matures in 2019 with two one-year extension options. The company said it realized net proceeds of approximately $143m on the deal. The real estate investment trust announced the financing package for the 1.6m sq ft Manhattan office building this week. The five year interest-only loan, with two one-year extension options, carries a margin of 165 basis points over LIBOR, and the company said it realized net proceeds of approximately $143m on the deal.

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OLYMPUS DIGITAL CAMERAA joint venture between HSBC, Landesbank Baden-Württemberg, Bank of China Limited, DekaBank and Union Bank have provided Vornado Realty Trust with $575m for the refinancing of Two Penn Plaza.

The real estate investment trust announced the financing package for the 1.6m sq ft Manhattan office building this week. The loan, which carries a margin of 165 basis points over LIBOR, matures in 2019 with two one-year extension options. The company said it realized net proceeds of approximately $143m on the deal.

Pursuant to an existing swap agreement, the $422m previous loan was swapped to a fixed rate of 4.78% through March 2018. Those terms apply to $422m of the new loan, while the $153m balance will float through March 2018; and the entire $575m will float thereafter for the duration of the new loan.