Summary
Realty Income Corporation (O) has filed an 8-K report on May 10, 2012, detailing the entry into an Amended and Restated Credit Agreement. This new agreement establishes a $1 billion unsecured revolving credit facility, significantly expanding the company's borrowing capacity from its previous $425 million facility. The new facility matures on May 9, 2016, with options for extension, and will be utilized for general corporate purposes. This updated credit facility demonstrates Realty Income's financial strength and commitment to maintaining liquidity. The terms include interest rates based on LIBOR or base rates plus an Applicable Margin tied to its investment grade credit ratings, as well as a commitment fee. The agreement contains standard covenants for financial reporting, maintenance of financial requirements, and events of default, providing a framework for responsible debt management.
Key Highlights
- 1Realty Income entered into a new $1 billion unsecured revolving credit facility, replacing its previous $425 million facility.
- 2The new credit facility matures on May 9, 2016, with provisions for extension.
- 3Borrowings will be subject to interest rates based on LIBOR or base rate, plus an Applicable Margin linked to the company's investment grade credit ratings.
- 4An initial Applicable Margin of 1.075% for LIBOR loans and a 0.175% commitment fee are established, reflecting current credit ratings.
- 5The credit agreement includes customary affirmative and negative covenants, ensuring financial discipline and transparency.
- 6Certain subsidiaries of Realty Income are guarantors under the new credit agreement.