Realty Income Prices $350 Million Of 3.25% Senior Unsecured Notes Due 2031

Rhea-AI Summary

Realty Income Corporation (NYSE: O) announced a public offering of $350 million in 3.25% senior unsecured notes maturing on January 15, 2031. The notes were priced at 108.241% of the principal, yielding 2.341% to maturity. Proceeds will enhance liquidity by repaying borrowings from a $3.0 billion revolving credit facility and may also fund investment opportunities. This offering adds to the $600 million previously issued on May 8, 2020. The closure is expected on July 16, 2020, pending customary conditions.

Positive

• Enhances liquidity by repaying existing borrowings.
• Opportunity for future investments with available funds.

Negative

• Increasing debt obligations with additional senior unsecured notes.

SAN DIEGO, July 6, 2020 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the pricing of a public offering of $350 million of 3.25% senior unsecured notes due January 15, 2031. The public offering price for the notes was 108.241% of the principal amount for an effective yield to maturity of 2.341%. The net proceeds from this offering will be used to increase the company's liquidity by repaying borrowings outstanding under its $3.0 billion revolving credit facility and, to the extent not used for that purpose, to fund potential investment opportunities and for other general corporate purposes. The notes offered will constitute a further issuance of the company's 3.25% Notes due 2031, of which $600 million aggregate principal amount was issued on May 8, 2020. This offering is expected to close on July 16, 2020, subject to the satisfaction of customary closing conditions.

The active joint book-running managers for the offering are Goldman Sachs & Co. LLC, Barclays Capital Inc., and Credit Suisse Securities (USA) LLC.

A copy of the prospectus supplement and prospectus, when available, related to this offering may be obtained by contacting: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or facsimile: (212) 902-9316 or email: prospectus-ny@ny.email.gs.com; Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847 or email: barclaysprospectus@broadridge.com; or . Credit Suisse, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, telephone: (800) 221-1037 or email: usa.prospectus@credit-suisse.com.

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act of 1933, as amended. These securities are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to the offering. 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, tenant 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, charges for property impairments, the effects of the COVID-19 pandemic and the measures taken to limit its impact, the effects of pandemics or global outbreaks of contagious diseases or fear of such outbreaks, the company's tenants' ability to adequately manage its 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 $350 million offering on July 6, 2020?

The offering aims to enhance liquidity by repaying borrowings under its $3.0 billion revolving credit facility.

When will the Realty Income $350 million notes offering close?

The offering is expected to close on July 16, 2020, subject to customary closing conditions.

What is the yield of Realty Income's newly issued senior unsecured notes?

The newly issued senior unsecured notes have an effective yield to maturity of 2.341%.

What was the offering price for Realty Income's new notes?

The public offering price for the notes was 108.241% of the principal amount.

What are the maturity details for Realty Income's $350 million offering?

The notes are set to mature on January 15, 2031.