Gramercy Capital redeems remaining $52.5 million subordinated notes

By Jennifer Chiou

New York, June 16 - Gramercy Capital Corp. announced the redemption of the $52.5 million of unsecured junior subordinated notes due June 30, 2035 issued by its operating partnership subsidiary.

The company said that it completed the transaction by transferring to noteholders an equivalent par value amount of various classes of bonds issued by affiliates Gramercy Real Estate CDO 2005-1, Gramercy Real Estate CDO 2006-1 and Gramercy Real Estate CDO 2007-1.

It also paid cash equivalents of $5 million.

In October 2009, the company settled an exchange of $97.5 million of the junior subordinated notes for an equivalent par amount of collateralized debt obligation bonds.

According to a company release, this redemption eliminates the notes from its consolidated financial statements. The original $150 million of notes was issued in February 2009.

Gramercy is an integrated commercial real estate finance and property investment company based in New York.

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