Realty Income Prices £750M Dual-Tranche Offering Of Sterling-Denominated Senior Unsecured Notes
Portfolio Pulse from Benzinga Newsdesk
Realty Income Corporation (NYSE:O) has priced a public offering of £750 million in senior unsecured notes, split into two tranches: £300 million at 5.750% due 2031 and £450 million at 6.000% due 2039. The offering prices were 99.298% and 99.250% of the principal amounts, respectively. The proceeds will be used for general corporate purposes, including debt repayment, property development, and acquisitions. The offering is set to close on December 5, 2023, with Wells Fargo Securities, Barclays, BNP Paribas, BofA Securities, and RBC Capital Markets as the active joint book-running managers.
November 28, 2023 | 9:26 pm
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NEUTRAL IMPACT
Realty Income Corporation has announced a significant sterling-denominated debt offering, which may impact its financial leverage and interest expenses.
The offering of senior unsecured notes by Realty Income is a common financial activity for corporate financing. While it indicates the company is taking on more debt, the use of proceeds for strategic purposes such as repaying existing debt and investing in property development is generally viewed as neutral to positive in the short term. The impact on the stock price will depend on investor sentiment towards increased leverage versus growth opportunities.
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IMPORTANCE 75
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