Summary
Realty Income Corporation (O) announced on July 6, 2020, that it entered into a purchase agreement to issue and sell an additional $350 million in aggregate principal amount of its 3.250% Notes due 2031. This issuance is a "re-opening" of the notes that were originally sold on May 8, 2020, bringing the total outstanding principal amount of this note series to $950 million ($600 million original + $350 million new issuance). The offering is expected to close on July 16, 2020, subject to standard closing conditions. This move indicates the company's strategy to raise capital, likely to fund acquisitions, development projects, or other corporate initiatives. Investors should note this increased debt leverage and consider its impact on the company's financial structure and interest coverage ratios.
Key Highlights
- 1Realty Income Corp. to issue and sell $350 million aggregate principal amount of 3.250% Notes due 2031.
- 2This represents a further issuance (re-opening) of an existing note series.
- 3The original $600 million issuance of these notes occurred on May 8, 2020.
- 4Total outstanding principal for the 3.250% Notes due 2031 will increase to $950 million upon closing.
- 5The offering is expected to close on July 16, 2020.
- 6The company entered into a purchase agreement with Goldman Sachs & Co. LLC, Barclays Capital Inc., and Credit Suisse Securities (USA) LLC as underwriters.