8-KMaterial AgreementsExhibits & Filings

REALTY INCOME CORP 8-K Report, Material Agreement (Jun 20, 2005)

Filed June 20, 2005For Securities:O

Summary

Realty Income Corporation (O) announced a significant update to its financing structure through an 8-K filing on June 20, 2005. The company entered into a new Credit Agreement on June 17, 2005, which will become effective on October 28, 2005, replacing its existing acquisition credit facility. This new agreement establishes a $300 million unsecured revolving credit facility with a maturity date of October 28, 2008. This new credit facility is a key development for investors as it provides substantial liquidity and financial flexibility. The unsecured nature of the facility indicates the company's strong credit standing. The terms include interest rates tied to LIBOR or base rates plus a margin, and a commitment fee, all of which are influenced by the company's debt ratings. This move demonstrates Realty Income's proactive approach to managing its debt and ensuring access to capital for its ongoing operations and growth strategies.

Key Highlights

  • 1Realty Income Corporation entered into a new Credit Agreement effective October 28, 2005.
  • 2The new agreement establishes a $300 million unsecured revolving credit facility.
  • 3The credit facility matures on October 28, 2008.
  • 4This facility replaces the company's existing acquisition credit facility.
  • 5Interest rates are based on LIBOR or base rate plus a margin of 0.65% for LIBOR loans, subject to debt ratings.
  • 6A quarterly commitment fee of 0.15% per annum is payable on the revolving committed amount, based on debt ratings.
  • 7Wells Fargo Bank, National Association is the Administrative Agent and co-lead Arranger for the credit facility.

Frequently Asked Questions

This 8-K filing announces that Realty Income Corporation has entered into a new Credit Agreement, which is a material definitive agreement that impacts the company's financing and liquidity.

The new credit facility is a $300 million unsecured revolving credit facility maturing on October 28, 2008. It bears interest based on LIBOR or a base rate plus a margin, and includes a quarterly commitment fee. The terms are influenced by the company's debt ratings.

The new Credit Agreement will become effective on October 28, 2005, upon the termination of the company's existing acquisition credit facility.

Wells Fargo Bank, National Association is the Administrative Agent and co-lead Arranger. Other key institutions include Bank of New York as Documentation Agent and co-lead Arranger, Bank of America, N.A. and Wachovia Bank, National Association as co-Syndication Agents, and AmSouth Bank, U.S. Bank National Association, Bank of Montreal, and Chevy Chase Bank, FSB.