Realty Income Corporation Announces Pricing of $275 Million Senior Unsecured Notes

Realty Income Corporation, known as "The Monthly Dividend Company," has announced the pricing of $275 million of 5.95% senior unsecured notes due 2016. The offering, priced at a public offering price of 99.740% of the principal amount, has an effective yield of 5.985%. The net proceeds from the offering will be used to fund the previously announced redemption of Realty Income's $110 million, 7 3/4% Notes, due May 2007, to repay borrowings under the Company's unsecured acquisition credit facility, and for other corporate purposes. The joint-book running managers for the offering are Banc of America Securities LLC, Citigroup, and Credit Suisse, with other co-managers including A.G. Edwards, BNY Capital Markets, Inc., BB&T Capital Markets, BMO Capital Markets, and Wells Fargo Securities.

Key Takeaways:

• Realty Income Corporation has priced $275 million of 5.95% senior unsecured notes due 2016, with a public offering price of 99.740% of the principal amount.
• The net proceeds from the offering will be used to fund the redemption of previously announced 7 3/4% Notes, repay borrowings under the Company's unsecured acquisition credit facility, and for other corporate purposes.
• The joint-book running managers for the offering are Banc of America Securities LLC, Citigroup, and Credit Suisse.
• The offering is expected to be rated BBB+ by Fitch Ratings, Baa2 by Moody's Investors Service, and BBB by Standard & Poor's Ratings Group.
• Realty Income intends to engage in additional public offerings of securities, including possible issuances of common stock, preferred stock, or unsecured notes, to finance previously announced acquisitions.

Statistics:

• $275 million: offering size of 5.95% senior unsecured notes due 2016
• 99.740%: public offering price of the notes
• 5.985%: effective yield of the offering
• 5.95%: coupon rate of the senior unsecured notes
• 2016: maturity date of the senior unsecured notes
• $110 million: amount of 7 3/4% Notes to be redeemed
• 7 3/4%: coupon rate of the 7 3/4% Notes
• May 2007: redemption date of the 7 3/4% Notes

Sources:

• Realty Income Corporation press release
• Registration Statement related to the offering
• Prospectus supplement related to the offering
• Banc of America Securities LLC
• Citigroup Global Markets Inc.
• Credit Suisse
• Fitch Ratings
• Moody's Investors Service
• Standard & Poor's Ratings Group