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Real estate industry

Realty Income Corporation Announces Public Offering of Common Stock

Strategic Insights

— 1 min read

Realty Income Corporation, known as "The Monthly Dividend Company," has announced a public offering of 6 million shares of its common stock at a price of $26.40 per share. The net proceeds from the offering, amounting to approximately $150.7 million, will be used to fund a portion of the $350 million purchase price for a pending acquisition of certain Buffets/Ryan's restaurant properties. The company plans to close the offering on October 23, 2006.

Key Takeaways:

  • The public offering of 6 million shares of Realty Income Corporation's common stock has been priced at $26.40 per share, generating approximately $150.7 million in net proceeds.
  • The net proceeds from the offering will be used to fund a portion of the $350 million purchase price for the pending acquisition of Buffets/Ryan's restaurant properties.
  • The acquisition is a pending and previously announced deal, with Realty Income undertaking no obligation to publicly release the results of any revisions to its forward-looking statements.
  • The underwriters for the offering include Merrill Lynch & Co., A.G. Edwards, Raymond James, Wachovia Securities, Robert W. Baird & Co., Banc of America Securities LLC, Credit Suisse, JP Morgan, BB&T Capital Markets, and Stifel Nicolaus.
  • The common stock is only offered by means of the prospectus included in the registration statement and the prospectus supplement related to the offering.
  • Realty Income's subsidiary, Crest Net Lease, may be impacted by the profitability of its operations.
  • The company's forward-looking statements involve known and unknown risks that may cause actual future results to differ materially from expected results.

Statistics:

  • 6,000,000 shares of Realty Income Corporation's common stock have been offered at $26.40 per share.
  • Net proceeds from the offering stand at approximately $150.7 million.
  • Purchase price for the Buffets/Ryan's restaurant properties amounts to approximately $350 million.
  • Total underwriters for the offering include 10 firms: Merrill Lynch & Co., A.G. Edwards, Raymond James, Wachovia Securities, Robert W. Baird & Co., Banc of America Securities LLC, Credit Suisse, JP Morgan, BB&T Capital Markets, and Stifel Nicolaus.

Sources:

  • Realty Income Corporation press release, obtained by calling the company's toll-free investor hotline number: 888-811-2001, or through the Internet at http://www.realtyincome.com/Investing/News.html.

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