Realty Income Prices Debut Public Offering Of Sterling-Denominated Senior Unsecured Notes

Rhea-AI Summary

Realty Income Corporation (NYSE: O) has priced a public offering of £400 million in 1.625% senior unsecured notes due December 15, 2030, at an effective yield of 1.712%. This marks the company's first public issuance of unsecured notes in GBP. The net proceeds will be used to repay GBP-denominated borrowings under a $3.0 billion revolving credit facility, settle a foreign exchange swap arrangement, and for potential investments and general corporate purposes. The offering is expected to close on October 1, 2020.

Positive

• First-time issuance of GBP-denominated unsecured notes.
• Funds will be used to repay existing borrowings, reducing overall debt.

Negative

• Potential dilution of shareholders due to new note issuance.

SAN DIEGO, Sept. 23, 2020 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the pricing of a public offering of £400 million of 1.625% senior unsecured notes due December 15, 2030. The public offering price for the notes was 99.191% of the principal amount for an effective annual yield to maturity of 1.712%.

The notes represent Realty Income's debut public issuance of unsecured notes denominated in British Pound Sterling (GBP). The net proceeds from this offering will be used to repay GBP-denominated borrowings outstanding under the company's $3.0 billion revolving credit facility, to settle an outstanding GBP/USD foreign exchange swap arrangement, and, to the extent not used for those purposes, to fund potential investment opportunities and for other general corporate purposes. The net proceeds from the swap settlement will be used to repay outstanding commercial paper. This offering is expected to close on October 1, 2020, subject to the satisfaction of customary closing conditions.

The active joint book-running managers for the offering are Barclays Bank PLC, Credit Suisse Securities (Europe) Limited, and Goldman Sachs & Co. LLC.

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

These securities are offered pursuant to a Registration Statement that has become effective under the U.S. 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 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 prospectus supplement and the accompanying prospectus for this offering and the company's other filings with the U.S .Securities and Exchange Commission that are incorporated by reference in such prospectus supplement and prospectus. 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 amount of Realty Income's recent bond offering?

Realty Income has priced a public offering of £400 million in senior unsecured notes.

When will the Realty Income bond offering close?

The offering is expected to close on October 1, 2020.

What will the proceeds from the bond offering be used for?

Net proceeds will be used to repay borrowings, settle a foreign exchange swap, and fund potential investments.

What is the maturity date for the new Realty Income senior notes?

The senior unsecured notes are due on December 15, 2030.

What is the yield of the Realty Income bond offering?

The effective annual yield to maturity for the notes is 1.712%.