Includes Establishment of $1.38 Billion Credit Facility for U.S. Core Plus Fund
Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, announced that it has closed on the recast and expansion of aggregate $5.38 billion multi-currency unsecured credit facilities. Included in the total capacity is a newly established $1.38 billion unsecured credit facility for Realty Income U.S. Core Plus Fund, LP, Realty Income’s open-end, perpetual life private capital vehicle.
“We are grateful for the support of our longtime lending partners and their continued confidence in the Realty Income platform. The recast includes the introduction of liquidity for our U.S. Core Plus Fund, demonstrating our robust access to capital to drive our growth initiatives,” said Jonathan Pong, Realty Income’s Chief Financial Officer and Treasurer.
$4.0 Billion Revolving Credit Facilities for Realty Income Corporation
Realty Income’s revolving credit facilities provide for updated capacity of $4.0 billion with an accordion expansion feature up to $5.0 billion, which is subject to obtaining lender commitments. The revolving credit facilities are bifurcated into two $2.0 billion tranches, which initially mature on April 29, 2027 and April 29, 2029, respectively, before giving effect to two six-month extension options for each facility. Pursuant to the terms of the revolving credit facilities, the company’s current A3 / A- credit ratings provide for a borrowing rate of 72.5 basis points over SOFR for U.S. Dollar borrowings, with a facility commitment fee of 12.5 basis points, for all-in drawn pricing of 85 basis points over SOFR for U.S. Dollar borrowings.
A total of 25 lenders are participating in the Realty Income revolving credit facilities, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc., TD Bank, N.A, and Mizuho Bank, Ltd. are serving as Joint Bookrunners.
$1.38 Billion Credit Facilities for Realty Income U.S. Core Plus Fund, LP
A subsidiary of Realty Income’s U.S. Core Plus Fund established the Fund’s $1.38 billion capacity credit facilities, which consists of a $1.0 billion revolving credit facility and a $380 million delayed draw, unsecured term loan with an accordion expansion feature up to $2.0 billion, which is subject to obtaining lender commitments. The revolving credit facility initially matures on April 29, 2029, before giving effect to two six-month extension options, and the $380 million delayed draw term loan initially matures on April 29, 2028, before giving effect to two six-month extension options.
A total of 23 lenders are participating in the Fund credit facilities, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC and TD Bank, N.A., are serving as Joint Bookrunners.
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