Realty Income to use some proceeds of preferreds to pay down facility

By Ashley Montgomery

Kansas City, Kan., Feb. 7 - Realty Income Corp. closed its offering of monthly income class F cumulative redeemable preferred stock and will use some of the proceeds to repay a portion of borrowings under its $425 million acquisition credit facility, according to a company news release.

Underwriters exercised their over-allotment option in full, resulting in total net proceeds of $361.7 million.

Proceeds will first be used to redeem all of Realty Income's outstanding class D preferred stock. The company said it will spend $127.5 million plus the amount of accrued dividends to redeem the preferreds.

Following the redemption, remaining proceeds will be used to repay the credit facility, under which the company owed $257.1 million as of Jan. 27.

Any remaining proceeds following the preferred stock repurchase and facility repayment will be used for general corporate purposes and working capital.

Realty Income is a real estate investment trust based in Escondido, Calif.

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