SL Green Realty Corp. Files Form 8-K for Public Offering of 5.00% Senior Notes due 2018

Strategic Insights -

On August 5, 2011, SL Green Realty Corp., a Delaware-based company, filed a Form 8-K with the Securities and Exchange Commission detailing a public offering of $250 million in 5.00% Senior Notes due 2018. The offering, made through a registration statement on Form S-3, resulted in a net proceed of approximately $246.5 million after underwriting discounts and fees. The Notes are senior unsecured obligations of the company and its subsidiaries, with a maturity date of August 15, 2018, and an interest rate of 5.00% per annum.

Key Takeaways:

  • The $250 million public offering of 5.00% Senior Notes due 2018 was made by SL Green Realty Corp. and its subsidiaries, SL Green Operating Partnership, L.P. and Reckson Operating Partnership, L.P.
  • The Notes bear an interest rate of 5.00% per annum and mature on August 15, 2018.
  • The offering resulted in net proceeds of approximately $246.5 million after underwriting discounts and fees.
  • The Notes are subordinate to any senior secured debt and rank equally with other unsecured senior indebtedness.
  • The company and its subsidiaries are subject to certain covenants, including restrictions on incurring additional indebtedness and encumbering assets.
  • The Co-Obligors have the option to redeem the Notes at a price equal to 100% of the principal amount, plus a "make-whole" premium, and accrued interest, if any.

Statistics:

  • Total amount of Notes issued: $250 million
  • Net proceeds from the offering: $246.5 million
  • Interest rate on the Notes: 5.00% per annum
  • Total amount of principal to be redeemed at maturity: $250 million
  • Total amount of "make-whole" premium to be paid upon redemption: N/A
  • Accrued and unpaid interest to be paid upon redemption: N/A

Sources:

  • FORM 8-K (Current report) filed by SL Green Realty Corp. with the Securities and Exchange Commission on August 05, 2011.