Jun 30, 2015, 05:15 ET
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.
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
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