Realty Income Closes 9.2 Million Share Common Stock Offering

Rhea-AI Summary

Realty Income Corporation (NYSE: O) has successfully closed a public offering of 9,200,000 shares of common stock, raising approximately $594 million before expenses. This includes the full exercise of an underwriters' option to buy 1,200,000 additional shares. The proceeds will primarily be used to repay borrowings under its $3.0 billion revolving credit facility and/or $1.0 billion commercial paper program, with potential funding for investment opportunities and general corporate purposes.

Positive

• Raised approximately $594 million from the stock offering.
• Intends to repay debt, improving financial stability.

Negative

• Dilution of existing shareholders due to increased share count.

SAN DIEGO, July 6, 2021 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the closing of the underwritten public offering of an aggregate of 9,200,000 shares of its common stock, which includes the full exercise of the underwriters' option to purchase 1,200,000 additional shares of common stock. Gross proceeds from the offering are approximately $594 million (before offering expenses). 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 have been filed with the Securities and Exchange Commission. Copies of the prospectus supplement and the accompanying prospectus 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 was the gross proceeds from Realty Income's stock offering?

The gross proceeds from Realty Income's stock offering were approximately $594 million.

What will Realty Income do with the proceeds from the stock offering?

Realty Income intends to use the proceeds to repay borrowings under its $3.0 billion revolving credit facility and/or its $1.0 billion commercial paper program.

How many shares did Realty Income offer in the public offering?

Realty Income offered an aggregate of 9,200,000 shares of its common stock.

Who managed Realty Income's public offering?

The joint book-running managers for Realty Income's offering were Wells Fargo Securities and Morgan Stanley.

What is the stock symbol for Realty Income?

Realty Income's stock symbol is O.