8-KMaterial Agreements

REALTY INCOME CORP 8-K Report, Material Agreement (May 16, 2008)

Filed May 16, 2008For Securities:O

Summary

Realty Income Corporation (O) announced on May 16, 2008, the execution of a new Credit Agreement, effective May 15, 2008. This agreement establishes a new unsecured revolving credit facility totaling $355 million, which replaces the company's existing $300 million acquisition credit facility. The facility matures on May 13, 2011, providing the company with a significant source of liquidity for its operations and growth initiatives. The new credit facility offers flexibility in borrowing costs, with interest rates tied to either the LIBOR rate or the base rate, plus a margin of 1.00% for LIBOR loans, subject to the company's debt ratings. A commitment fee of 0.275% per annum is also applicable. This updated credit arrangement demonstrates the company's ongoing efforts to manage its capital structure and ensure access to funding in the current market environment.

Key Highlights

  • 1Realty Income Corporation (O) entered into a new Credit Agreement on May 15, 2008.
  • 2The agreement establishes a $355 million unsecured revolving credit facility.
  • 3This new facility replaces the company's previous $300 million acquisition credit facility.
  • 4The credit facility matures on May 13, 2011.
  • 5Interest rates are based on LIBOR or base rate plus a margin of 1.00% for LIBOR loans.
  • 6A commitment fee of 0.275% per annum is payable on the revolving committed amount.
  • 7Wells Fargo Bank, National Association is the Administrative Agent and Sole-Lead Arranger.

Frequently Asked Questions

This 8-K filing announces Realty Income Corporation's entry into a new Credit Agreement, specifically detailing the terms of a new unsecured revolving credit facility.

The new credit facility is for $355 million and matures on May 13, 2011.

Borrowings bear interest at either the LIBOR rate or the base rate, plus a margin of 1.00% for LIBOR loans, determined by the company's current debt ratings.

Yes, the new $355 million credit facility replaces Realty Income Corporation's prior $300 million acquisition credit facility.