Gramercy Capital Settles Note Exchange Friday, October 16, 3:20 PM ET
On Friday Gramercy Capital (NYSE:GKK) announced it settled an exchange of 97.5 million worth of its junior subordinated notes due 2035, exchanging the notes for an equivalent par value amount of various classes of CDO bonds that had previously purchased in the open market. The exchange leaves 52.5 million junior subordinated notes remaining.
The terms of the junior subordinated notes restricted the company from paying distributions on its common and preferred stock in 2009, other than distributions required to maintain REIT qualifications. The company had paid a 63 cent quarterly dividend back in the second quarter of 2008, before suspending it.
Gramercy Capital had previously been externally managed by SL Green Realty Corp. (NYSE:SLG), but internalized its management through the direct acquisition of the external management company for a de minimis amount.
Shares of Gramercy were trading lower Friday morning, but were up over 3% on afternoon trading.
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