Summary
Realty Income Corporation (O) announced the closing of a public offering of its common stock on September 26, 2011. The company successfully issued 6,300,000 shares at a price of $34.00 per share, with an overallotment option for an additional 945,000 shares. This offering generated significant proceeds, estimated at approximately $203.6 million before considering the overallotment option, and potentially up to $234.2 million if fully exercised. The primary use of these net proceeds is to repay borrowings under the company's $425 million acquisition credit facility. These borrowings were instrumental in funding real estate acquisitions, indicating that the company is actively expanding its real estate portfolio. This capital raise demonstrates Realty Income's ability to access equity markets to support its growth strategy and manage its debt obligations.
Key Highlights
- 1Public offering of 6,300,000 shares of common stock closed on September 26, 2011.
- 2Public offering price was $34.00 per share.
- 3Potential for up to an additional 945,000 shares to be sold under the overallotment option.
- 4Total net proceeds estimated at approximately $203.6 million (before overallotment), potentially reaching $234.2 million if fully exercised.
- 5Proceeds will be used to repay borrowings under the company's $425 million acquisition credit facility.
- 6The acquisition credit facility was used to fund real estate acquisitions.
- 7The offering was underwritten by Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.