#San Diego #United Kingdom #Realty Income #Term Loan #Sterling-Denominated

Realty Income Secures £900 Million Sterling-Denominated Term Loan

In a significant move to consolidate its financial strengths, Realty Income Corporation, known as The Monthly Dividend Company®, has successfully closed a massive £900 million Sterling-denominated unsecured term loan. This initiative not only reinforces the financial position of the company but also underscores its commitment to expanding its portfolio across international markets.

Loan Details and Use of Proceeds

The newly secured loan boasts an initial maturity set for January 2028, with a valuable twelve-month extension option available. The funds raised will primarily be allocated towards settling existing Sterling-denominated borrowings within Realty Income's expansive $4.0 billion multicurrency revolving credit facility. Specifically, this mechanism is geared towards pre-funding the refinancing needs related to an upcoming multi-currency term loan due in January 2026, which includes a substantial £705 million Sterling-denominated tranche.

As per the loan terms, Realty Income's existing A3/A- credit ratings provide a competitive borrowing rate of 80 basis points above the Sterling Overnight Index Average (SONIA) rate. Complementing this transaction, Realty Income has also executed two-year variable-to-fixed interest rate swaps, effectively locking in a weighted average interest rate of 4.3% over the term. This is a testament to the company's tactical approach to managing its debt portfolio amidst fluctuating interest rates.

Strategic Importance of the Loan

Jonathan Pong, Realty Income's Executive Vice President and CFO, expressed gratitude towards the company's lenders, emphasizing the importance of their longstanding partnerships. He highlighted how this term loan tactically addresses impending maturities while providing a lower fixed-rate option, thus allowing Realty Income to enhance its financial flexibility in global markets.

The Financial Team Behind the Loan

The execution of this strategic loan was overseen by Toronto Dominion (Texas) LLC, acting as the Administrative Agent. A consortium of trusted financial institutions participated in the loan act as Joint Bookrunners, including TD Securities, The Bank of Nova Scotia, BofA Securities, JPMorgan Chase, and Truist Securities. These partnerships reinforce Realty Income’s established network within the financial community.

Other prevalent institutions serving in various capacities as Joint Lead Arrangers and Syndication Agents entail Bank of America, Regions Bank, and Banco Bilbao Vizcaya Argentaria. Notably, the participation of BNP Paribas and Wells Fargo signifies widespread confidence in Realty Income's robust operational model and market standing.

Realty Income’s Track Record

Realty Income Corporation stands out in the realm of real estate investments as part of the S&P 500 and has been at the forefront of providing dependable monthly dividends, celebrated under its moniker of The Monthly Dividend Company®. Since its inception in 1969, Realty Income has cultivated a diverse portfolio, encompassing over 15,500 properties across all U.S. states, the U.K., and multiple European nations.

The company prides itself on its consistent performance; it has declared 665 consecutive monthly dividends and is recognized in the S&P 500 Dividend Aristocrats® index for consistently increasing dividends over more than 30 years.

Future Outlook

The strategic move to secure this loan not only aims to alleviate immediate financial pressures but also serves as a springboard for Realty Income’s plans for further geographic expansion and portfolio diversification. With an eye on future growth avenues, Realty Income continues to prioritize investments that bolster both its operational capacity and shareholder returns.

In conclusion, Realty Income’s recent financial maneuvers exemplify its proactive stance in managing its debt profile, ensuring it remains well-positioned to adapt and thrive in the ever-evolving real estate market landscape.

Additional Information

For those interested in Realty Income’s ongoing initiatives and future plans, further details are available on their official website: www.realtyincome.com.