Reckson begins change-of-control tender offer for 4% exchangeables

By Angela McDaniels

Seattle, Feb. 14 - Reckson Operating Partnership, LP said it began a tender offer for its $287.5 million of 4% exchangeable senior debentures due 2025.

The company will pay par plus accrued interest up to but excluding the payment date.

The offer will expire at 9 a.m. ET on March 15.

The offer is required under the change-of-control provision in the indenture governing the debentures, according to a company news release.

A change in control occurred on Jan. 25 when SL Green Realty Corp. acquired all of Reckson Associates Realty Corp.'s outstanding shares in a merger transaction.

Following the change in control and in accordance with the terms of the indenture, the exchange rate for the debentures is now 7.7461 shares of SL Green common stock for each $1,000 principal amount of debentures and the reference dividend for the debentures is $1.3491.

The effective date for the new exchange rate and new reference dividend is Jan. 25.

The debentures were previously exchangeable into 24.6214 shares of Reckson Associates Realty, a Uniondale, N.Y.-based real estate investment trust, per $1,000 principal amount of debentures.

The tender offer is not conditioned upon the tender of a minimum amount of debentures and is not subject to any financing condition, the company said, adding that it plans to fund the offer with available cash on hand.

The Bank of New York (call Carolle Montreuil at 212 815-5920) is the depositary for the tender offer.

SL Green Realty is a real estate investment trust based in New York that specializes in Manhattan office properties.

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