Trump Scores $617 Million of Cash With Vornado From Tower Bonds

SourceYahoo News
SectorFinancial Markets
CountryMiddle east

Oops!Something went wrong.Please try again later.Adam Tempkin and Sophie AlexanderApril 30, 2021, 10:53 AM·4 min readOops!Something went wrong.Please try again later.

(Bloomberg) — Investors snapped up $1.2 billion of bonds linked to a San Francisco office tower that makes up much of Donald Trump’s fortune.

The AAA slice of the commercial mortgage-backed security sold Friday with a discount margin, or risk premium, of 125 basis points over one-month Libor — roughly in line with other recent office-tower deals.

The bonds are being used to refinance a loan on the 555 California Street property in a deal that gives joint owners Vornado Realty Trust and Trump a $617 million payout.

The complex, among the tallest buildings in San Francisco, is one of two Trump-linked office towers that Vornado is refinancing. The other is in New York. While Vornado majority owns them, Trump’s 30% stake is the most valuable part of his portfolio, making up about one-third of his $2.3 billion fortune, according to the more...