By Stephanie N. Rotondo
Portland, Ore., Jan. 31 - Realty Income Corp., the Monthly Dividend Co., priced a $325 million offering of 6.625% monthly income class F cumulative redeemable preferred stock, according to a press release issued Tuesday.
The deal came at the low end of price talk, which was 6.625% to 6.75%.
The underwriters have a $48.75 million over-allotment option.
Dividends are payable on the 15th day of each month.
The preferreds can be redeemed beginning Feb. 15, 2017 at the company's option.
The Escondido, Calif.-based real estate investment trust intends to list the preferreds on the New York Stock Exchange. Settlement is expected Feb. 7.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC are the bookrunners. Credit Suisse Securities (USA) LLC and Raymond James & Associates Inc. are the co-lead managers. Barclays Capital Inc., BB&T Capital Markets, Jeffries & Co., J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. are the senior co-managers. BNY Mellon Capital Markets LLC, Janney Montgomery Scott LLC, Mitsubishi UFJ Securities (USA) Inc., Morgan Keegan & Co. Inc. and Piper Jaffray & Co. are the co-managers.
Proceeds will be used to redeem the trust's class D preferreds. Remaining funds will be used to repay borrowings under the company's $425 million acquisition credit facility.
| Issuer: | Realty Income Corp.
|
| Securities: | Monthly income class F cumulative redeemable preferred stock
|
| Amount: | $325 million, or 13 million shares
|
| Greenshoe: | $48.75 million, or 1.95 million shares
|
| Dividend: | 6.625%, payable monthly
|
| Price: | $25
|
| Maturity: | Perpetual
|
| Call option: | On or after Feb. 15, 2017
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC
|
| Co-lead managers: | Credit Suisse Securities (USA) LLC and Raymond James & Associates Inc.
|
| Senior managers: | Barclays Capital Inc., BB&T Capital Markets, Jeffries & Co., J.P. Morgan Securities LLC, Stifel Nicolaus & Co. Inc.
|
| Co-managers: | BNY Mellon Capital Markets LLC, Janney Montgomery Scott LLC, Mitsubishi UFJ Securities (USA) Inc., Morgan Keegan & Co. Inc. and Piper Jaffray & Co.
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 7
|
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