LEXINGTON, VORNADO, WINTHROP ACQUIRE 15 MILLION SHARES OF LEXINGTON STOCK

NEW YORK CITY, PARAMUS, N.J. AND BOSTON — New York City-based Lexington Realty Trust has agreed to the forward purchase of 3.5 million shares of its own common stock, in addition to the sale of 11.5 million additional shares to two Northeast REITs. Paramus-based Vornado Realty Trust will acquire 8 million common shares of Lexington’s stock, bringing its total number of Lexington common shares owned to 16.1 million. Boston-based Winthrop Realty Trust also agreed to purchase 3.5 million shares of Lexington’s common stock. All of the shares purchased in the transaction were traded at a price of $5.60 per share. The shares were previously held by AP LXP Holdings LLC, an affiliate of Apollo Real Estate Advisors III LP.
In connection with Lexington’s forward purchase of its shares, the company has prepaid 50 percent of the purchase price and will make floating payments during the 3-year term of the forward purchase at an interest rate of LIBOR plus 250 basis points per annum. Vornado and Winthrop have also arranged 3-year, non-recourse financing at 50 percent of the purchase price for their commons shares purchased. The interest rate is also LIBOR plus 250 basis points.