Realty Income amends term loans to assume $1.3 billion of Spirit debt

By Mary-Katherine Stinson

Lexington, Ky., Jan. 24 – Realty Income Corp. entered into two amended and restated term loan agreements on Jan. 22 with Wells Fargo Bank, NA as administrative agent totaling $800 million and $500 million, according to an 8-K filing with the Securities and Exchange Commission.

The loan agreements were made in connection with Realty Income’s merger with Spirit Realty Capital, Inc.

The $800 million term loan agreement provides for the assumption by Realty Income of Spirit Realty, LP’s existing $300 million tranche A term loan and Spirit Realty, LP’s existing $500 million tranche B term loan. The new agreement replaces Spirit Realty, LP’s term loan agreement dated Aug. 22, 2022 with JPMorgan Chase Bank, NA as administrative agent.

The $500 million term loan agreement provides for the assumption by the company of Spirit Realty, LP’s existing $500 million tranche C term loan. The new agreement replaces Spirit Realty, LP’s term loan agreement dated Nov. 17, 2022 with JPMorgan as administrative agent.

The replacement tranche A term loan will mature on Aug. 22, 2025, the tranche B term loan will mature on Aug. 20, 2027, and the tranche C term loan will mature on June 16, 2025.

The assumed term loans bear interest at SOFR plus an applicable margin based on the company’s credit ratings. The margin is currently 80 basis points.

The loan agreements include some financial covenants.

The term loan agreements became effective on Jan. 23 concurrently with the consummation of the merger.

The real estate investment trust is based in San Diego.

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