Realty Income (O) prices £400 million senior notes offering.

Realty Income (O) announced today that it has priced a public offering of £400 million 1.625% senior unsecured notes due 2031.  The notes were priced at a discount to yield 1.712% or +150 basis points to the benchmark rate.  The company said that proceeds will be used to repay GBP-denominated borrowings under the $3.0 billion revolving credit facility.  Realty Income's current long term debt ratings are A3/A- from Moody's and S&P, each with a stable outlook.

The current offering is Realty Income's second Sterling-denominated debt transaction.  In May 2019, the company completed a £315 private placement that was used to fund the purchase of the Sainsbury portfolio.  According to REIT/BASE, the latest bond offering signals that Realty Income has continued to expand in the UK and intends to hedge much of its international investments with like-denominated debt.

Realty Income is a large-cap equity REIT focusing on the acquisition and ownership of net-lease retail (84%) and commercial (16%) properties.  The company was added to the S&P 500 in 2015 and has a current market capitalization of approximately $28 billion.


09/23/2020