REALTY INCOME PRICES £500 MILLION OF DUAL-TRANCHE STERLING-DENOMINATED SENIOR UNSECURED NOTES

Rhea-AI Summary

On January 11, 2022, Realty Income Corporation (NYSE: O) announced the pricing of a £500 million public offering of senior unsecured notes. This includes £250 million of 1.875% notes due January 14, 2027, and £250 million of 2.500% notes due January 14, 2042. The effective semi-annual yields are 1.974% and 2.584%, respectively. Proceeds will fund investment opportunities and repay debts under a $3.0 billion revolving credit facility. The offering is set to close on January 14, 2022.

Positive

• Successful pricing of £500 million in senior unsecured notes, enhancing liquidity.
• Weighted average effective yield of approximately 2.28% over a term of about 12.5 years.

Negative

• None.

SAN DIEGO, Jan. 11, 2022 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the pricing of a public offering of £250 million of 1.875% senior unsecured notes due January 14, 2027 (the "2027 Notes") and £250 million of 2.500% senior unsecured notes due January 14, 2042 (the "2042 Notes"). The public offering price for the 2027 Notes was 99.487% of the principal amount for an effective semi-annual yield to maturity of 1.974% and the public offering price for the 2042 Notes was 98.445% of the principal amount for an effective semi-annual yield to maturity of 2.584%.

Combined, the new issues of the 2027 Notes and the 2042 Notes have a weighted average term of approximately 12.5 years and a weighted average effective semi-annual yield to maturity of approximately 2.28%. The net proceeds from this offering will be used to fund potential investment opportunities and for other general corporate purposes, which may include repayment of indebtedness under Realty Income's $3.0 billion revolving credit facility and/or Realty Income's commercial paper program.

This offering is expected to close on January 14, 2022, subject to the satisfaction of customary closing conditions.

The active joint book-running managers for the offering are J.P. Morgan, TD Securities and Wells Fargo Securities.

UK MiFIR – professionals/ECPs-only / No PRIIPs or UK PRIIPs KID – Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK.

A copy of the prospectus supplement and prospectus, when available, related to this offering may be obtained by contacting: J.P. Morgan, 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom, Attention: Head of International Syndicate, by telephone at +44-207-134-2468; TD Securities, 31 West 52nd Street, 2nd Floor, New York, New York 10019, Attention: Syndicate Department, by telephone at (855) 495-9846; or Wells Fargo Securities, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, by telephone at (800) 645-3751 or by email at wfscustomerservice@wellsfargo.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 our 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, terms or completion of these acquisitions, uncertainties regarding whether the anticipated benefits of the merger with VEREIT, Inc., which closed on November 1, 2021, and the spin-off of the office properties to Orion Office REIT Inc. on November 12, 2021 will be achieved, 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 ability of clients to adequately manage their properties and fulfill their respective lease obligations to Realty Income, the outcome of any legal proceedings to which Realty Income is a party and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of Realty Income's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. Realty Income does 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 are the details of Realty Income Corporation's recent public offering?

Realty Income Corporation announced a £500 million public offering of senior unsecured notes, comprising £250 million of 1.875% notes due in 2027 and £250 million of 2.500% notes due in 2042.

What is the effective yield of the new notes issued by Realty Income?

The effective semi-annual yield for the 2027 notes is 1.974%, while for the 2042 notes, it is 2.584%.

How will Realty Income use the proceeds from the public offering?

The proceeds will be utilized for potential investment opportunities and to repay indebtedness under Realty Income's $3.0 billion revolving credit facility.

When is the closing date for Realty Income's public offering?

The offering is expected to close on January 14, 2022, pending customary closing conditions.