Vornado offers to buy back up to $2.01B in bonds

Vornado Realty Trust opens tender offer for up to $2.01 billion in outstanding bonds

• On 5:07 pm EST, Monday November 2, 2009

PARAMUS, N.J. (AP) -- Vornado Realty Trust on Monday said it opened a tender offer for two sets of outstanding bonds worth up to $2.01 billion.

The real estate investment trust, which focuses on commercial properties, said it will buy back any and all of its outstanding 3.625 percent convertible senior debentures due 2016, worth up to $887 million.

It will also buy back any or all of its outstanding 2.85 percent convertible senior debentures due 2027, worth up to $1.13 million.

Vornado will use cash on hand to pay a dollar-for-dollar match on the bonds, plus accrued and unpaid interest.

The tender offer expires at midnight EST on Dec. 1.

Bank of America Merrill Lynch and Goldman Sachs & Co. are serving as the dealer managers for the offering.

Vornado shares added 68 cents to $60.24 in afternoon trading.