San Diego Business Journal

Realty Income Announces $656.9 Million Stock Offering

Thursday, March 7, 2013

Realty Income Corp. has announced a public offering of common stock, expected to generate net proceeds of approximately $656.9 million.

A statement from the Escondido-based company said Realty Income is offering 15 million shares, priced at $45.90 per share. The offering is expected to close March 11.

Officials said the offering was upsized from an original planned amount of 10 million shares, and all shares are being sold by the company. The company has also granted underwriters a 30-day option to purchase up to 2.25 million additional shares to cover overallotments.

Realty Income plans to use net proceeds to repay borrowings under its $1 billion acquisition credit facility. Any remaining net proceeds will go toward other general corporate purposes and working capital, which may include additional acquisitions and repayment of other debt, the statement said.

The company listed 16 firms underwriting the offering, including BofA Merrill Lynch, Morgan Stanley, Wells Fargo Securities, Credit Suisse, Raymond James, RBC Capital Markets and UBS Investment Bank.

Realty Income is a real estate investment trust focused on retail, industrial and related commercial properties. It trades under the symbol O on the New York Stock Exchange.

— SDBJ Staff Report