Realty Income Announces Pricing Of Upsized 8.0 Million Share Common Stock Offering

Rhea-AI Summary

Realty Income Corporation (NYSE: O) announced the pricing of an underwritten public offering of 8,000,000 shares of common stock, aiming for gross proceeds of approximately $519 million. The offering is set to close on July 6, 2021, with underwriters granted a 30-day option for an additional 1,200,000 shares. Proceeds will primarily repay borrowings under its $3.0 billion revolving credit facility and $1.0 billion commercial paper program, while also funding potential investments and general corporate purposes.

Positive

• Raising approximately $519 million through the share offering.
• Intention to repay significant borrowings, improving balance sheet health.

Negative

• Dilution risk for existing shareholders due to the issuance of new shares.
• Borrowing repayment could indicate existing financial pressures.

SAN DIEGO, June 30, 2021 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the pricing of an underwritten public offering of 8,000,000 shares of the company's common stock for expected gross proceeds of approximately $519 million. The offering is expected to close on July 6, 2021. The underwriters of the offering have been granted a 30-day option to purchase up to 1,200,000 additional shares of common stock. The joint book-running managers for the offering are Wells Fargo Securities and Morgan Stanley.

The company intends to use net proceeds from the offering to repay borrowings under its $3.0 billion revolving credit facility and/or $1.0 billion commercial paper program, and, to the extent not used for that purpose, to fund potential investment opportunities and/or for other general corporate purposes.

A prospectus supplement and accompanying prospectus related to the public offering of these securities will be filed with the Securities and Exchange Commission. Copies of the prospectus supplement and the accompanying prospectus, when available, may be obtained from Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, at (800) 326-5897 or email: cmclientsupport@wellsfargo.com; or Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014.

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act. These securities are only offered by means of the prospectus supplement related to the offering and the related prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities, in any state or other jurisdiction where, or to any person to whom, the offer, solicitation, or sale of these securities would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-Looking Statements

Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, domestic and foreign real estate conditions, client financial health, the availability of capital to finance planned growth, volatility and uncertainty in the credit markets and broader financial markets, changes in foreign currency exchange rates, property acquisitions and the timing of these acquisitions, the structure, timing and completion of the announced mergers between us and VEREIT, Inc., if consummated, and any effects of the announcement, pendency or completion of the announced mergers, including the anticipated benefits therefrom, charges for property impairments, the effects of the COVID-19 pandemic and the measures taken to limit its impact, or the effects of other pandemics or global outbreaks of contagious diseases or fear of such outbreaks, on the company's clients' ability to adequately manage their properties and fulfill their respective lease obligations to the company, and the outcome of any legal proceedings to which the company is a party, as described in the company's filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no 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 purpose of Realty Income's recent stock offering?

Realty Income's stock offering aims to raise approximately $519 million to repay borrowings and fund potential investments.

When is Realty Income's stock offering expected to close?

The stock offering is expected to close on July 6, 2021.

What are the details of the shares being offered by Realty Income?

Realty Income is offering 8,000,000 shares with an underwriters' option for an additional 1,200,000 shares.

What will the proceeds from the Realty Income stock offering be used for?

The proceeds will be used to repay borrowings under a $3.0 billion revolving credit facility and a $1.0 billion commercial paper program.

What stock symbol is associated with Realty Income?

The stock symbol for Realty Income Corporation is O.