Summary
Realty Income Corporation (O) filed an 8-K on August 27, 2013, to report a material definitive agreement: the Second Amendment to its Credit Agreement. This amendment, dated August 19, 2013, and executed on August 27, 2013, involves key modifications to the Company's existing credit facility. For investors, the most significant aspects of this amendment relate to changes in how the Company calculates asset values and the inclusion of properties held by certain subsidiaries. Specifically, the definition of "Gross Asset Value" was modified to alter how certain property acquisitions are calculated, and the definition of "Unencumbered Asset" was expanded to encompass properties held by Guarantors that are not wholly owned by Realty Income. Furthermore, the amendment mandates that certain non-wholly owned subsidiaries must become guarantors under specific conditions. These changes could impact the Company's leverage ratios and overall financial flexibility.
Key Highlights
- 1Realty Income Corporation entered into a Second Amendment to its Credit Agreement on August 27, 2013.
- 2The amendment modifies the definition of 'Gross Asset Value,' impacting the calculation of certain property acquisitions.
- 3The definition of 'Unencumbered Asset' is broadened to include properties held by Guarantors that are not wholly owned subsidiaries.
- 4Certain subsidiaries not wholly owned by the Company will be required to become guarantors under specific conditions.
- 5These changes are designed to enhance the Company's financial flexibility and reporting mechanisms.
- 6The filing incorporates the Second Amendment document as an exhibit, providing detailed terms.