Published on 6/12/2019 in the Prospect News Investment Grade Daily.
New Issue: Realty Income sells $500 million 3.25% 10-year notes at 120 bps spread
By Cristal Cody
Tupelo, Miss., June 12 – Realty Income Corp. sold $500 million of 3.25% 10-year senior notes on Wednesday at a spread of 120 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (A3/A-/BBB+) priced at 99.359 to yield 3.326%.
Bookrunners were Citigroup Global Markets Inc., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to repay a portion of borrowings outstanding under a $3 billion revolving credit facility, for investment opportunities and for general corporate purposes.
The real estate investment trust for retail and commercial properties is based in Escondido, Calif.
| Issuer: | Realty Income Corp.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2029
|
| Bookrunners: | Citigroup Global Markets Inc., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC and Wells Fargo Securities LLC
|
| Co-lead managers: | BB&T Capital Markets, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., Stifel, Nicolaus & Co., Inc., TD Securities (USA) LLC and UBS Securities LLC
|
| Senior co-managers: | Comerica Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Co-managers: | Academy Securities, Inc., Evercore Group, LLC and Moelis & Co. LLC
|
| Coupon: | 3.25%
|
| Price: | 99.359
|
| Yield: | 3.326%
|
| Spread: | Treasuries plus 120 bps
|
| Call feature: | Before March 15, 2029 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Trade date: | June 12
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
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