ALEXANDERS INC 8-K

What Happened
Alexander's, Inc. announced on December 23, 2025 that its wholly-owned subsidiaries (731 Retail One LLC and 731 Commercial LLC) restructured the $300,000,000 mortgage on the retail condominium units at 731 Lexington Avenue and extended the loan maturity to December 23, 2035. The Original Loan was split into a $132,500,000 Senior Note (A-Note), a $167,500,000 Junior Note (C-Note) retained by the existing junior lenders, and a new intermediate loan (B-Note) from ALX Rego Holdings LLC (a wholly-owned subsidiary of the Company) to the borrowers to fund capital/re-leasing expenses and A-Note interest.

Key Details

• Original loan amount: $300,000,000 restructured on Dec 23, 2025; new maturity: Dec 23, 2035.
• A-Note: $132,500,000, interest 7.00% per annum (paid current); purchased at par by ALX Rego on Dec 23, 2025.
• C-Note: $167,500,000, interest 4.55% per annum (interest not paid current), held by existing junior lenders.
• B-Note (Intermediate Loan from ALX Rego): funds for capital/re-leasing and to fund A-Note interest; interest accrues at 13.5% per annum (not paid current). If more than $65M is advanced under the B-Note, additional advances used to pay A-Note interest will accrue at 7.00% per annum.
• Waterfall for available cash, sale or refinancing proceeds (after expenses): 1) pay A-Note principal/interest; 2) pay B-Note principal/interest; 3) remaining proceeds split pari passu: 70% to C-Note and 30% to Borrower. Any remaining unpaid indebtedness after application in a qualified refinancing or sale (subject to appraisal after year 3) will be forgiven.
• The Amended Loan Agreement is non-recourse to Alexander’s, Inc., with limited covenants for the benefit of the C-Note and limited carveouts for certain "bad‑boy" acts.

Why It Matters
This restructuring extends the mortgage maturity by ten years and changes the payment priority among lenders and the company’s subsidiary lender (ALX Rego). Investors should note Alexander’s subsidiary now holds the senior A-Note and a high‑interest intermediate B-Note exposure, while existing lenders retain the junior C-Note. The agreement prioritizes repayment to the A-Note and B-Note before distributions to the borrower and includes provisions that can forgive remaining debt after a qualifying refinancing or sale, which could affect future cash flows and recovery priorities tied to the 731 Lexington Avenue retail asset.