Realty Income Announces Expanded $4.25 Billion Unsecured Revolving Credit Facility

Rhea-AI Summary

Realty Income Corporation (NYSE: O) has successfully closed a $4.25 billion amended multicurrency unsecured revolving credit facility, replacing its previous $3.0 billion facility. This credit line can expand to $5.25 billion and matures in June 2026, with options for two six-month extensions. The facility offers a competitive borrowing rate of 85 basis points over the adjusted SOFR rate. The company aims to enhance its financial flexibility, facilitating ongoing growth and liquidity.

Positive

• Closed a $4.25 billion revolving credit facility, enhancing financial flexibility.
• Facility can expand to $5.25 billion, indicating strong lender support.
• Competitive borrowing rate of 85 basis points over adjusted SOFR.

Negative

• None.

SAN DIEGO, April 28, 2022 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced that it has closed on an amended $4.25 billion multicurrency unsecured revolving credit facility, which replaces the company's existing $3.0 billion unsecured revolving credit facility.

The capacity of the revolving credit facility can be increased to $5.25 billion with an accordion expansion feature, which is subject to obtaining lender commitments. The revolving credit facility initially matures in June 2026 and includes two six-month extensions that can be exercised at the company's option. Pursuant to the terms of the revolving credit facility, the company's current A3/A- credit ratings provide for a borrowing rate of 72.5 basis points over an adjusted SOFR rate, with a facility commitment fee of 12.5 basis points, for all-in drawn pricing of 85 basis points over the adjusted SOFR rate.

A total of 25 lenders are participating in the revolving credit facility, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd. and TD Bank, N.A. are serving as Joint Bookrunners. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., TD Bank, N.A., BofA Securities, Inc. and Regions Capital Markets are serving as Joint Lead Arrangers. JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd. and TD Bank, N.A. are serving as Syndication Agents. Bank of America, N.A., Regions Bank, BNP Paribas SA, U.S. Bank National Association, The Bank of Nova Scotia and Royal Bank of Canada are serving as Documentation Agents.

Other participants in the new credit facility include Barclays Bank PLC, Citibank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A, PNC Bank, BBVA, S.A., BMO Harris Bank, N.A., Bank of New York Mellon, Citizens Bank, Credit Suisse AG, Huntington Bancshares Inc., Truist Bank, UBS AG, Associated Bank, and Comerica Bank.

"We are grateful to our lending partners for their longstanding support and loyalty. We believe that the additional financial flexibility afforded to us through the upsized revolver will allow us to continue our profitable growth journey, including internationally, while preserving ample liquidity," 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 11,100 real estate properties owned under long-term net lease agreements with commercial clients. To date, the company has declared 622 consecutive common stock monthly dividends throughout its 53-year operating history and increased the dividend 115 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 future operations and results, strategy, plans, or intentions of management, and the anticipated consummation of pending transactions. 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, 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 new credit facility amount announced by Realty Income on April 28, 2022?

Realty Income announced a new credit facility of $4.25 billion.

What is the maturity date for Realty Income's new revolving credit facility?

The new revolving credit facility matures in June 2026.

How much can Realty Income's revolving credit facility increase to?

Realty Income's revolving credit facility can increase to $5.25 billion.

What is the borrowing rate for Realty Income's new credit facility?

The borrowing rate is 85 basis points over the adjusted SOFR rate.

How many lenders are participating in Realty Income's new credit facility?

A total of 25 lenders are participating in the new credit facility.