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Silverstein’s 3 WTC bond sale is biggest unrated debt deal

Developer's $1.6B debt offering comes at a hefty price: sky-high interest rates

Larry Silverstein and 3 World Trade Center
Larry Silverstein and 3 World Trade Center

Developer Larry Silverstein’s Silverstein Properties closed on the sale of $1.6 billion in tax-exempt bonds, making it the biggest-ever deal for unrated debt.

The sale will help finance construction of Silverstein’s 1,170-foot-tall, 2.5 million-square-foot tower 3 World Trade Center. Goldman Sachs Group managed the offering and sold $1.1 billion of senior bonds that will mature in 30 years at a preliminary 5 percent yield.

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Also sold: $231 million of 30-year subordinate debt a preliminary 7.25 percent yield and $280 million of junior bonds at 5.3 percent and 5.5 percent. The building is 20 percent leased.

“They paid more yield than anything of its size in the market right now,” Daniel Solender of Jersey City-based Lord Abbett & Co., told Bloomberg News. [Bloomberg News] — Mark Maurer

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Silvershore Properties