San Diego Business Journal

Realty Income Announces Pricing for Note Offering

Monday, October 8, 2012

Realty Income Corp. has announced pricing for an offering of $800 million in unsecured notes.

The Escondido-based real estate investment trust is offering $350 million of five-year, 2 percent fixed-rate notes, due Jan. 31, 2018; and $450 million of 10-year, 3.25 percent fixed-rate notes, due Oct. 15, 2022, according to a statement.

The public offering price of the five-year notes represents an effective yield to maturity of just over 2 percent. The price for the 10-year notes represents an effective yield to maturity of just over 3.3 percent.

Net proceeds from the offering will be used to repay borrowings on the company’s $1 billion acquisition credit facility. Any remaining proceeds will be used for general corporate purposes, the statement said.

Realty Income owns a nationwide portfolio of retail, industrial and related commercial properties. The company trades under the symbol O on the New York Stock Exchange.