Summary
Realty Income Corporation (O) has filed an 8-K report announcing the entry into a new Credit Agreement on June 30, 2015. This new agreement replaces the company's existing $1.5 billion revolving credit facility with a larger $2.0 billion senior unsecured revolving credit facility, maturing on June 30, 2019. Additionally, the company has secured a $250 million senior unsecured delayed draw term loan facility, available until December 30, 2015, and maturing on June 30, 2020. This expansion of its credit facilities indicates Realty Income's proactive approach to managing its capital structure and supporting future growth initiatives. The new facilities offer flexibility and provide access to a significant amount of capital at competitive terms, reflecting the company's strong credit standing. Investors should note the interest rates are tied to LIBOR or Base Rate plus an applicable margin, which is influenced by the company's credit ratings, with initial margins set at 0.90% for the revolving facility and 0.95% for the term loan.
Key Highlights
- 1Realty Income entered into a new Credit Agreement on June 30, 2015.
- 2The new agreement establishes a $2.0 billion senior unsecured revolving credit facility, replacing the previous $1.5 billion facility.
- 3The revolving credit facility matures on June 30, 2019, with an option for extension.
- 4A $250 million senior unsecured delayed draw term loan facility has also been established, maturing June 30, 2020.
- 5Borrowings are subject to interest based on LIBOR or Base Rate plus an applicable margin determined by credit ratings.
- 6The initial applicable margin for the revolving credit facility is 0.90% for LIBOR loans.
- 7The initial applicable commitment fee for the revolving credit facility is 0.15%.