Vornado moves to create Alexander's REIT.Alexander's Inc. and Vornado Realty Trust Vornado Realty Trust (NYSE: VNO) is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's. announced that they have agreed in principle to enter into a number of transactions designed to provide Alexander's with great financial flexibility and resources. Among other things, Alexander's will become a real estate investment trusts, will obtain new financing; will extend its existing easing arrangement; and will enter into a comprehensive management and development agreement. Alexander's also had previously received an extension date for its final payment to creditors.
Vornado has agree to provide Alexander's with up to $75 million of secured financing for a three-year term. Alexander's has agreed to extend for three years an exclusive leasing agreement with Vornado. Vornado will also serve as Alexander's manager and developer, and Steven Roth, chairman and chief executive officer of Vornado, will become CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Alexander's. Stephen Mann will remain chairman of Alexander's. Among other conditions, these transactions are subject to the closing of the stock acquisition described below and to bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. approval.
Alexander's will use the proceeds of the financing to repay allowed general unsecured Unsecured
A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. credit claims, to repay certain loans and for working capital and real estate development costs and activities. Alexander's stated that to complete its planned development activities additional financing will be required. These financings are in various stages of negotiation.
Vornado, which owns 2.3 percent of Alexander's common stock, also announced that it has entered into an agreement to acquire all of the 1,353,468 Alexander's shares (27.1 percent) owned by Citibank, N.A. for $40.50 per share in cash. Roth and interstate in·ter·state
Involving, existing between, or connecting two or more states.
One of a system of highways extending between the major cities of the 48 contiguous United States.
Noun 1. Properties, a partnership in which Roth is a general partner, together won 34.5 percent of the outstanding common shares of beneficial interest of Vornado and 27.2 percent of Alexander's common stock. Upon consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like.
2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of this acquisition, which is conditioned upon Alexander's becoming a REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). , Vornado and its affiliates will own 56.4 percent of the outstanding common stock Alexander's. Vornado and affiliates will be restricted for three years from owning in excess of two-thirds of Alexander's common stock without the consent of the Independent directors of Alexander's. This transaction is subject to bankruptcy court of the management and development agreement and financing referred to above. Vornado may seek participants for its loan to Alexander's and anticipates it will seek to augment aug·ment
v. aug·ment·ed, aug·ment·ing, aug·ments
1. To make (something already developed or well under way) greater, as in size, extent, or quantity: its cash balances with additional borrowings.
These various transactions are expected to close in the first half of 1995.
Alexander's also announced that it had entered into an agreement with the Official Committee of Unsecured Creditors Unsecured Creditor
An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. on terms for an extension of up to March 31, for the final payment of approximately $28 million due general unsecured creditors under the company's plan of reorganization. Alexander's will be required to auction properties if creditors are not repaid by March 31. The agreement was approved by the bankruptcy court on Jan. 4.