SAN DIEGO, June 30, 2015 /PRNewswire/ -- Realty Income
Corporation (Realty Income, NYSE: O), The Monthly Dividend
Company®, announced today that the company has closed a
new $2.25 billion unsecured credit
facility to replace its previous $1.5 billion unsecured credit facility. The
new credit facility is comprised of a $2.0
billion unsecured revolving credit facility and a
$250 million five-year unsecured term
loan.
Under the terms of the new revolving credit facility, total
funds available are $2.0 billion,
plus an additional $1.0 billion
accordion expansion feature. The initial term of the new revolving
credit facility is four years maturing in June 2019, plus two six-month extensions that can
be exercised at the company's option. Under the new revolving
credit facility, the company's current BBB+/Baa1 credit ratings
provide for a borrowing rate of LIBOR (London Interbank Offered
Rate) plus 90 basis points with a facility commitment fee of 15
basis points, for all-in drawn pricing of 105 basis points over
LIBOR versus all-in drawn pricing of 125 basis points over LIBOR
under the previous facility.
The new $250 million unsecured
term loan matures in June 2020.
Borrowing under the term loan bears interest at LIBOR plus 95 basis
points, based on our current credit rating. In conjunction with
this term loan, we also entered into an interest rate swap which
essentially fixes our per annum interest rate on the term loan at
2.67%.
A total of 21 lenders are participating in the new credit
facility, including Wells Fargo Bank as the Joint-lead Arranger and
Administrative Agent, Bank of America and Royal Bank of
Canada as Joint-lead Arrangers and
Co-Syndication Agents, Regions Bank as a Co-Syndication Agent,
JPMorgan Chase Bank and U.S. Bank National Association as
Co-Documentation Agents, and The Bank of New York Mellon, Branch
Banking and Trust Company, MUFG Union Bank, PNC Bank, Barclays
Bank, Citibank, Credit Suisse, Goldman Sachs, Mizuho, Morgan
Stanley, RBS Citizens Bank, UBS AG, Raymond
James, Associated Bank and Comerica Bank as additional
participants in the facility.
"We are pleased with the completion of our new and expanded
credit facility which reduces our borrowing costs and enhances our
liquidity," said John P. Case, Chief
Executive Officer of Realty Income. "Given the growth of our
company and its increased activity, this additional financial
flexibility will allow us to continue expanding our real estate
portfolio while maintaining our commitment to a conservative
balance sheet structure. We are extremely appreciative of the
support from our long-term banking partners and our new
participants in the facility. Their collective commitments far
exceeded our anticipated needs and reflect the confidence the
banking community has in our company and its prospects for
continued future growth and performance."
About the Company
Realty Income, The Monthly Dividend
Company®, is an S&P 500 company dedicated to
providing shareholders with dependable monthly income. The company
is structured as a REIT and its monthly dividends are supported by
the cash flow from over 4,300 real estate properties owned under
long-term lease agreements with regional and national commercial
tenants. To date, the company has declared 540 consecutive common
stock monthly dividends throughout its 46-year operating history
and increased the dividend 81 times since Realty Income's public
listing in 1994 (NYSE: O). The company is an active buyer of
net-leased commercial properties nationwide. Additional information
about the company can be obtained from the corporate website at
www.realtyincome.com or www.twitter.com/realtyincome.
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