ESCONDIDO, Calif., Sept. 16, 2014 /PRNewswire/ -- Realty Income
Corporation (Realty Income), The Monthly Dividend
Company®, (NYSE:O), today announced the pricing of
$250 million of 4.125% senior
unsecured notes due 2026. The public offering price for the notes
was 99.499% of the principal amount for an effective yield to
maturity of 4.178%. Approximately $220
million of the net proceeds from the offering (plus the
amount necessary to pay accrued but unpaid dividends on the
company's Class E preferred stock) will be used to redeem all of
the outstanding shares of the 6.75% Class E preferred stock. The
remaining net proceeds will be used to repay a portion of the
borrowings outstanding under the company's acquisition credit
facility and, to the extent not used for the foregoing purposes,
for other general corporate purposes and working capital, which may
include acquisitions. This offering is expected to close on
September 23, 2014, subject to
customary closing conditions.
The joint-book running managers for the offering are Citigroup,
BofA Merrill Lynch, BNY Mellon Capital Markets, LLC, J.P. Morgan,
RBC Capital Markets, Regions Securities LLC, US Bancorp, and Wells
Fargo Securities. The co-lead manager for the offering is Morgan
Stanley. Senior co-managers include BB&T Capital Markets, BBVA,
MUFG Securities, and PNC Capital Markets LLC. Other co-managers are
Capital One Securities, Comerica Securities, Raymond James, SMBC Nikko, Evercore Partners,
Mizuho Securities, Moelis & Company and TAP Advisors. A copy of
the prospectus supplement and prospectus related to this offering
may be obtained by contacting Citigroup by telephone (toll free) at
1-877-858-5407, BofA Merrill Lynch by telephone (toll free) at
1-800-294-1322 or by email at dg.prospectus_requests@baml.com, RBC
Capital Markets by telephone (toll free) at 1-866-375-6829 or by
email at usdebtcapitalmarkets@rbccm.com, US Bancorp by telephone
(toll free) at 1-877-558-2607 or Wells Fargo Securities by
telephone (toll free) at 1-800-326-5897 or by email at
cmclientsupport@wellsfargo.com.
These securities are offered pursuant to a Registration
Statement that has become effective under the Securities Act of
1933. These securities are only offered by means of the prospectus
included in the Registration Statement and the prospectus
supplement related to the offering. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any offer or sale of these securities in any
state or other jurisdiction where the offer, solicitation, or sale
of these securities would be unlawful prior to the registration or
qualification under the securities laws of any such state or other
jurisdiction.
Forward-Looking Statements
Statements in this press release that are not strictly historical
are "forward-looking" statements. Forward-looking statements
involve known and unknown risks, which may cause the company's
actual future results to differ materially from expected results.
These risks include, among others, general economic conditions,
local real estate conditions, tenant financial health, the
availability of capital to finance planned growth, continued
volatility and uncertainty in the credit markets and broader
financial markets, property acquisitions and the timing of these
acquisitions, charges for property impairments, and the outcome of
legal proceedings to which the company is a party, as described in
the company's filings with the Securities and Exchange Commission.
Consequently, forward-looking statements should be regarded solely
as reflections of the company's current operating plans and
estimates. Actual operating results may differ materially from what
is expressed or forecast in this press release. The company
undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date these statements
were made.
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SOURCE Realty Income Corporation