Summary
Realty Income Corporation (O) announced on August 21, 2020, the establishment of a U.S. dollar-denominated unsecured commercial paper program. This program allows the company to issue unsecured commercial paper notes with a maximum aggregate outstanding amount of $1.0 billion. The proceeds from these notes are intended for general corporate purposes. The company plans to utilize its existing $3.0 billion revolving credit facility as a liquidity backstop for the repayment of these commercial paper notes, indicating a robust liquidity management strategy. This move is generally aimed at providing additional flexibility in managing short-term funding needs.
Key Highlights
- 1Establishment of a $1.0 billion unsecured commercial paper program.
- 2Commercial paper notes will be unsecured and rank pari passu with existing unsecured senior indebtedness.
- 3Proceeds will be used for general corporate purposes.
- 4The company has a $3.0 billion revolving credit facility serving as a liquidity backstop.
- 5This program enhances short-term funding flexibility.
- 6Notes issued will not be registered under the Securities Act of 1933, relying on exemptions.