8-KMaterial AgreementsExhibits & Filings

REALTY INCOME CORP 8-K Report, Material Agreement (Jul 22, 2021)

Filed July 22, 2021For Securities:O

Summary

Realty Income Corporation (O) filed an 8-K on July 22, 2021, reporting on an amendment to its existing Credit Agreement through a Consent Letter dated July 20, 2021. This amendment is directly related to the previously announced Agreement and Plan of Merger with VEREIT, Inc. The primary impact of this amendment is to extend the timeline for VEREIT and VEREIT OP to become guarantors under Realty Income's Credit Agreement, contingent on the VEREIT Merger's completion. Furthermore, it allows for certain assets of VEREIT, VEREIT OP, and their subsidiaries to be classified as "Unencumbered Assets" within the Credit Agreement's framework during this interim period. This filing provides investors with an update on the financial structuring and covenant management in preparation for the significant VEREIT acquisition.

Key Highlights

  • 1Realty Income (O) amended its Credit Agreement via a Consent Letter dated July 20, 2021.
  • 2The amendment is a direct consequence of the pending merger with VEREIT, Inc.
  • 3The deadline for VEREIT and VEREIT OP to become guarantors under the Credit Agreement has been extended.
  • 4The amendment permits certain VEREIT assets to be classified as "Unencumbered Assets" on an interim basis.
  • 5This modification facilitates the integration process post-VEREIT merger.
  • 6The filing was made on July 22, 2021, with an event date of July 19, 2021.

Frequently Asked Questions

The Consent Letter amends Realty Income's Credit Agreement to provide flexibility regarding the VEREIT merger. Specifically, it extends the timeframe for VEREIT and VEREIT OP to become guarantors and allows their assets to be counted as 'Unencumbered Assets' during the period leading up to or immediately following the merger's completion.

This amendment is a crucial step in facilitating the VEREIT merger. By adjusting the requirements for VEREIT becoming a guarantor and allowing its assets to qualify as unencumbered, Realty Income is ensuring its credit facility remains compliant and supportive of the transaction as it progresses towards closing.

The amendment does not create new debt obligations but rather modifies the terms and covenants within the existing Credit Agreement to accommodate the upcoming VEREIT merger. It provides a grace period for integrating VEREIT's assets and liabilities into the credit structure.

In the context of credit agreements, 'Unencumbered Assets' typically refer to real estate properties owned by the borrower that are not subject to any liens or other security interests that would prevent them from being used as collateral for the credit facility. The amendment allows VEREIT's assets to be treated as such during an interim period, which is important for maintaining compliance with certain financial covenants of the Credit Agreement.