SL Green, PGIM Boost Strength With Refinancing of 11 Madison Avenue

Core Insights - SL Green Realty Corp. (SLG) and PGIM completed a $1.4 billion refinancing of 11 Madison Avenue, with a five-year fixed-rate mortgage at a coupon rate of 5.625%, effectively hedged to 5.592% for SL Green's portion [1][8] - The refinancing replaces the previous $1.4 billion debt, which included a $1.075 billion senior mortgage and two mezzanine loans totaling $325 million [1] Property Overview - 11 Madison Avenue is a 30-story office tower with 2.3 million square feet of space, located in a prime area with access to restaurants and upscale shopping, currently 93% occupied [2][8] - The building features prestigious tenants and is home to the renowned 3-Michelin-Star restaurant, Eleven Madison Park [2][8] Financing Details - The CMBS financing was led by Wells Fargo Bank, with participation from major financial institutions including J.P. Morgan Chase, Bank of America, Goldman Sachs, Deutsche Bank, and Bank of Montreal [3] Strategic Implications - The refinancing enhances SL Green's financial flexibility, improving its maturity profile and liquidity for daily operations [4] - The company is positioned for growth due to strong tenant demand for premium office spaces and easing supply pressures, leading to healthy leasing activity [4] Market Performance - Over the past six months, SL Green's shares have increased by 3.4%, contrasting with a 0.6% decline in the broader industry [5]