Realty Income to repay revolver borrowings via new note proceeds

By Marisa Wong

Los Angeles, May 6 – Realty Income Corp. plans to repay borrowings outstanding under its $3 billion revolving credit facility due March 24, 2023 using proceeds from an offering of senior notes, according to a 424B5 filing with the Securities and Exchange Commission.

Any remaining funds from the new notes will be used to fund potential investments and for general corporate purposes, which may include the repayment of borrowings outstanding under the company’s $250 million term loan due June 30, 2020.

As of May 1, Realty Income had $1.9 billion of outstanding borrowings under the revolver, including £325.5 million of sterling-denominated borrowings, and a total of $1.2 billion in cash and cash equivalents.

As of May 1, the weighted average interest rate on revolver borrowings was 1.5%, and term loans bore interest at 2.62%, based on current credit ratings.

The real estate investment trust is based in San Diego.

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