8-KMaterial AgreementsFinancial EventsExhibits & Filings

REALTY INCOME CORP 8-K Report, Material Agreement (Jan 6, 2023)

Filed January 6, 2023For Securities:O

Summary

Realty Income Corporation (O) announced on January 6, 2023, the entry into a new Term Loan Agreement. This agreement provides the Company with access to $90.0 million USD, £705.0 million Sterling, and €85,000,000 Euro in term loans. The facility also includes an accordion feature allowing for up to an additional $1.5 billion in aggregate borrowings, subject to lender commitments, offering significant financial flexibility. These new term loans have a maturity of 364 days from the closing date, with the option for two twelve-month extensions. The interest rates are benchmark-based (SOFR for USD, SONIA for Sterling, EURIBOR for Euro) plus an Applicable Margin of 0.800% per annum, which is tied to the Company's credit ratings. The agreement contains standard covenants, including financial reporting requirements and maintenance of certain financial conditions, alongside customary events of default. This new financing arrangement is a key development for managing its capital structure and funding future opportunities.

Key Highlights

  • 1Realty Income Corporation entered into a new Term Loan Agreement on January 6, 2023.
  • 2The agreement provides access to three currency-denominated term loans: $90.0 million USD, £705.0 million Sterling, and €85,000,000 Euro.
  • 3A significant feature is an accordion expansion option allowing for up to an additional $1.5 billion in total borrowings.
  • 4The term loans have an initial maturity of 364 days, with two discretionary twelve-month extensions available.
  • 5Interest rates are variable, based on benchmark rates (SOFR, SONIA, EURIBOR) plus an Applicable Margin of 0.800%.
  • 6The agreement includes customary affirmative and negative covenants, as well as events of default.
  • 7This new debt facility offers enhanced financial flexibility and potential for future growth funding.

Frequently Asked Questions

The initial aggregate amount of the term loans is $90.0 million USD, £705.0 million Sterling, and €85,000,000 Euro. The agreement also includes an accordion feature that permits additional borrowings up to an aggregate of $1.5 billion in total.

The Term Loans mature on the date that is 364 days after the closing date. However, the Company has the option to exercise two twelve-month maturity extensions under the terms specified in the agreement.

The interest rates are variable and depend on the currency. For USD borrowings, it's SOFR plus an Applicable Margin. For Sterling borrowings, it's SONIA plus an Applicable Margin. For Euro borrowings, it's EURIBOR plus an Applicable Margin. The current Applicable Margin is 0.800% per annum, which is subject to adjustments based on the Company's credit ratings.

The Term Loan Agreement contains customary affirmative covenants, including financial reporting requirements, and negative covenants that involve maintaining certain financial requirements. It also includes standard events of default.