New Issue: Realty Income sells $1 billion 4.7% notes due 2028, 4.9% notes due 2033

By Marisa Wong and Cristal Cody

Los Angeles, April 5 – Realty Income Corp. priced $1 billion of fixed-rate notes (expected: A3/A-) in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.

Realty Income priced $400 million of 4.7% notes due Dec. 15, 2028 with a spread of 155 basis points to Treasuries after talk started in the 170 bps area. The 2028 notes priced at 98.949 to yield 4.912%.

The company also priced $600 million of 4.9% notes due July 15, 2033 with a spread of 185 bps to Treasuries against talk in the 200 bps area. The 2033 notes priced at 98.02 to yield 5.148%.

Both notes will have make-whole call options until some months before the maturity date and then par call options.

The joint bookrunners are Wells Fargo Securities, LLC, Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, TD Securities (USA) LLC, BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.

Proceeds will be used for general corporate purposes, which may include the repayment or repurchase of debt including borrowings under the company’s revolving credit facility or commercial paper programs, foreign currency or interest rate swaps or other hedging instruments, the development and acquisition of additional properties and other acquisition or business combination transactions and the expansion and improvement of certain properties.

The structured real estate investment trust is based in San Diego.

Issuer:	Realty Income Corp.
Amount:	$1 billion
Description:	Notes
Bookrunners:	Wells Fargo Securities, LLC, Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, TD Securities (USA) LLC, BBVA Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
Co-lead managers:	BNY Mellon Capital Markets, LLC, PNC Capital Markets LLC, Regions Securities LLC and Truist Securities, Inc.
Senior co-managers:	BMO Capital Markets Corp., Citizens Capital Markets, Inc. and Huntington Securities, Inc.
Co-managers:	UBS Securities LLC, Comerica Securities, Inc., Samuel A. Ramirez & Co., Inc., Moelis & Co. LLC, Academy Securities, Inc. and R. Seelaus & Co., LLC
Trustee:	Bank of New York Mellon Trust Co.
Counsel to issuer:	Latham & Watkins LLP and Venable LLP
Counsel to underwriters:	Sidley Austin LLP
Trade date:	April 5
Settlement date:	April 14
Expected ratings:	Moody’s: A3
	S&P: A-
2028 notes
Amount:	$400 million
Maturity:	Dec. 15, 2028
Coupon:	4.7%
Price:	98.949
Yield:	4.912%
Spread:	Treasuries plus 155 bps
Call options:	Make-whole call at Treasuries plus 25 bps prior to Nov. 15, 2028; par call after that
Price talk:	Treasuries plus 170 bps area
Cusip:	756109BS2
2033 notes
Amount:	$600 million
Maturity:	July 15, 2033
Coupon:	4.9%
Price:	98.02
Yield:	5.148%
Spread:	Treasuries plus 185 bps
Call option:	Make-whole call at Treasuries plus 30 bps prior to April 15, 2033; par call after that
Price talk:	Treasuries plus 200 bps area
Cusip:	756109BT0

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