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Realty Income Recasts and Expands Credit Facilities to $5.38 Billion
ORealty Income(O) Prnewswire·2025-04-29 20:15

Core Insights - Realty Income Corporation has successfully closed on the recast and expansion of its aggregate multi-currency unsecured credit facilities, totaling 5.38billion,whichincludesanewlyestablished5.38 billion, which includes a newly established 1.38 billion credit facility for its U.S. Core Plus Fund [1][2] Credit Facilities Overview - The revolving credit facilities have an updated capacity of 4.0billion,withanaccordionfeatureallowingexpansionupto4.0 billion, with an accordion feature allowing expansion up to 5.0 billion, subject to lender commitments [3] - The facilities are divided into two tranches of 2.0billioneach,maturingonApril29,2027,andApril29,2029,withoptionsforsix−monthextensions[3]−TheborrowingrateforU.S.Dollarborrowingsissetat72.5basispointsoverSOFR,withafacilitycommitmentfeeof12.5basispoints,resultinginanall−indrawnpricingof85basispointsoverSOFR[3]ParticipationandManagement−Atotalof25lendersareinvolvedintherevolvingcreditfacilities,withWellsFargoBankactingastheAdministrativeAgentandseveralmajorbanksservingasJointBookrunners[4]−FortheU.S.CorePlusFund,23lendersareparticipating,withWellsFargoBankalsoservingastheAdministrativeAgent[6]FundSpecifics−TheU.S.CorePlusFundhasestablisheda2.0 billion each, maturing on April 29, 2027, and April 29, 2029, with options for six-month extensions [3] - The borrowing rate for U.S. Dollar borrowings is set at 72.5 basis points over SOFR, with a facility commitment fee of 12.5 basis points, resulting in an all-in drawn pricing of 85 basis points over SOFR [3] Participation and Management - A total of 25 lenders are involved in the revolving credit facilities, with Wells Fargo Bank acting as the Administrative Agent and several major banks serving as Joint Bookrunners [4] - For the U.S. Core Plus Fund, 23 lenders are participating, with Wells Fargo Bank also serving as the Administrative Agent [6] Fund Specifics - The U.S. Core Plus Fund has established a 1.38 billion capacity credit facility, which includes a 1.0billionrevolvingcreditfacilityanda1.0 billion revolving credit facility and a 380 million delayed draw, unsecured term loan, with an accordion feature allowing expansion up to $2.0 billion [5] - The revolving credit facility is set to mature on April 29, 2029, while the delayed draw term loan matures on April 29, 2028, both with options for six-month extensions [5] Company Background - Realty Income, known as "The Monthly Dividend Company," is an S&P 500 company founded in 1969, focusing on diversified commercial real estate investments [7] - The company has a portfolio of over 15,600 properties across the U.S., U.K., and six other European countries, and has consistently declared monthly dividends for over 30 years [7] - The U.S. Core Plus Fund, established in late 2024, aims to partner with institutional investors to acquire and manage a diversified portfolio of U.S. net lease investments [8]