Fitch: Realty Income unchanged

News that Realty Income Corp. and American Realty Capital Trust, Inc. signed an amendment to the previously announced merger agreement does not affect Realty Income's credit ratings, according to Fitch Ratings.

The amended terms include a cash consideration of $0.35 per share or about $55.5 million in addition to the original consideration of 0.2874 Realty Income shares for each American Realty share, Fitch said.

Realty Income also announced an expected annual dividend rate of $2.17 per share, an increase of $0.35 per share, the agency said.

These terms will not materially change pro forma credit metrics, Fitch said.

The agency said it expects the transaction to close under the amended terms.

However, Realty Income's issuer default rating of BBB+ would not be affected if the merger is not consummated.

The company also has a BBB+ rating on its $1 billion unsecured revolving credit facility, BBB+ rating on its $2.6 billion senior unsecured notes and BBB- rating on its $609.4 million preferred stock.

The outlook is stable.

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