Realty Income Corporation (Realty Income), The Monthly Dividend Company ®, (NYSE:O), announced today that the Company has entered into a new $1.0 billion unsecured acquisition credit facility to replace its existing $425 million credit facility.
Under the terms of the new credit facility, total funds available will be $1.0 billion, plus an additional $500 million accordion expansion feature. The initial term of the new facility runs for four years through May 10, 2016, plus a one-year extension option thereafter. Under the new credit facility, the Company’s current investment grade credit ratings will provide for a borrowing rate of LIBOR (London Interbank Offer Rate) plus 107.5 basis points with a facility commitment fee of 17.5 basis points, for all-in drawn pricing of 125 basis points over LIBOR. This borrowing rate is a significant reduction from the previous all-in drawn pricing of 220 basis points over LIBOR.
The Sole-lead Arranger and Administrative Agent for the credit facility is Wells Fargo Securities LLC. Bank of America, N.A. and Regions Bank are Co-Syndication Agents, and The Bank of New York Mellon, U.S. Bank National Association, J.P. Morgan Chase Bank, N.A. and Royal Bank of Canada are Co-Documentation Agents. Union Bank, N.A., Branch Banking and Trust Company, BBVA Compass Bank, PNC Bank, Sumitomo Mitsui, Capital One Bank, Raymond James and Comerica Bank are additional participants in the facility.
Commenting on the transaction, EVP, Chief Financial Officer & Treasurer, Paul M. Meurer said, “We are very pleased with the expansion of our credit facility, which enhances our liquidity and financial flexibility, and provides ready access to capital for our property acquisition efforts. We also recognize the important relationships we have with our bank lenders, many of whom we have done business with for several years. We appreciate the long-term support of our banking partners as we have grown over the years, and we welcome the bank lenders who are new to the relationship with Realty Income. This facility will provide us with the funds to continue to increase the size of our real estate portfolio, which is fundamental to our goal of regularly increasing the amount of the monthly dividend we pay to our shareholders.”
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