Realty Income Announces $1.0 Billion Multicurrency Term Loan

Rhea-AI Summary

Realty Income Corporation (NYSE: O) has successfully closed a $1.0 billion multicurrency unsecured term loan, maturing in January 2024, with options for two twelve-month extensions. The loan's borrowing rate is set at 80.0 basis points over the benchmark rates, and the company has executed interest rate swaps to fix its rate at 5.0%. Nine lenders participated, with Toronto Dominion acting as the Administrative Agent. The financing enhances Realty Income's financial flexibility and supports its disciplined capital allocation.

Positive

• Completed a $1.0 billion multicurrency unsecured term loan.
• Loan supports enhanced financial flexibility and liquidity.
• Fixed interest rate at 5.0% for the loan term.

Negative

• None.

SAN DIEGO, Jan. 6, 2023 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced that it has closed on a $1.0 billion multicurrency unsecured term loan. The loan initially matures in January 2024 and includes two twelve-month extensions that can be exercised at the company's option.

Pursuant to the terms of the loan, the company's current A3/A- credit ratings provide for a borrowing rate of 80.0 basis points over the applicable benchmark rate, which includes adjusted SOFR for US Dollar-denominated loans, adjusted SONIA for Sterling-denominated loans, and EURIBOR for Euro-denominated loans. In conjunction with closing, we executed one-year variable-to-fixed interest rate swaps which fix our per annum interest rate at 5.0% over the initial term.

A total of nine lenders are participating in the loan. Toronto Dominion (Texas) LLC is acting as the Administrative Agent. TD Securities (USA) LLC, The Bank of Nova Scotia, BofA Securities, Inc., JPMorgan Chase Bank, N.A., and Mizuho Bank, Ltd. are serving as Joint Bookrunners. TD Securities (USA), LLC, The Bank of Nova Scotia, BofA Securities, Inc., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Regions Capital Markets, Truist Securities, Inc., and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch are serving as Joint Lead Arrangers. Bank of America, N.A. and JPMorgan Chase Bank, N.A. are serving as Syndication Agents. The Bank of Nova Scotia, Mizuho Bank, Ltd., Regions Bank, Truist Bank, and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch are serving as Documentation Agents. Affiliates of the foregoing financial institutions and Wells Fargo Bank, National Association are serving as lenders.

"We value our longstanding partnership with our lenders, and we are appreciative of the continued support represented by this financing. This term loan bolsters our financial flexibility and liquidity profile, supporting our capacity to be disciplined capital allocators in the near term," said Christie Kelly, Executive Vice President, Chief Financial Officer and Treasurer of Realty Income.

About Realty Income
Realty Income, The Monthly Dividend Company^®, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats^® index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 11,700 real estate properties owned under long-term net lease agreements with commercial clients. To date, the company has declared 630 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 118 times since Realty Income's public listing in 1994 (NYSE: O). Additional information about the company can be obtained from the corporate website at www.realtyincome.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. When used in this press release, the words "estimated," "anticipated," "expect," "believe," "intend," and similar expressions are intended to identify forward-looking statements. Forward-looking statements also include discussions of our business and portfolio including portfolio acquisitions and the related properties timing, concentrations, rent, properties, clients, and impact to the current portfolio, future operations and results, the announcement of operating results, strategy, plans, and the intentions of management. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business and economic conditions; competition; fluctuating interest and currency rates; access to debt and equity capital markets; continued volatility and uncertainty in the credit markets and broader financial markets; other risks inherent in the real estate business including our clients' defaults under leases, potential liability relating to environmental matters, illiquidity of real estate investments, and potential damages from natural disasters; impairments in the value of our real estate assets; changes in income tax laws and rates; the continued evolution of the COVID-19 pandemic and the measures taken to limit its spread, and its impacts on us, our business, our clients (including those in the theater industry), or the economy generally; the timing and pace of reopening efforts at the local, state and national level in response to the COVID-19 pandemic and developments, such as the unexpected surges in COVID-19 cases, that cause a delay in or postponement of reopenings; the outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; any effects of uncertainties regarding whether the anticipated benefits or results of our merger with VEREIT, Inc. will be achieved; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Those forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Actual plans and operating results may differ materially from what is expressed or forecasted in this press release. We do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

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SOURCE Realty Income Corporation

FAQ

What is the amount of the loan announced by Realty Income (O)?

Realty Income announced a loan amount of $1.0 billion.

What is the maturity date for Realty Income's new loan?

The loan matures in January 2024.

What is the fixed interest rate for the new loan by Realty Income (O)?

The fixed interest rate for the loan is set at 5.0%.

Which financial institutions participated in Realty Income's loan?

Nine lenders participated in the loan, with Toronto Dominion as the Administrative Agent.

How does the new loan impact Realty Income's financial position?

The loan enhances Realty Income's financial flexibility and liquidity for capital allocation.