ESCONDIDO, Calif., May 21 /PRNewswire/ -- Realty Income Corporation
(Realty Income), "The Monthly Dividend Company," (NYSE: O) today announced the
pricing of $60 million of its Class B Cumulative Redeemable Preferred Stock at
$25 per share. The offering is anticipated to close on May 25, 1999.
Dividends on the Class B preferred stock will be paid quarterly at a rate of
9 3/8% per annum which is equivalent to approximately $2.34 per share on an
annualized basis. The first dividend payment will be on June 30, 1999 in the
amount of $0.22786 per share. The preferred stock has no stated maturity,
sinking fund or mandatory redemption provision. It also is not convertible
into any other security of the Company. At the Company's option, the
preferred stock may be redeemed at $25 per share on or after May 25, 2004.
The offering was underwritten by Merrill Lynch & Co. Inc., Donaldson,
Lufkin & Jenrette, Inc., A.G. Edwards & Sons, Inc., EVEREN Securities, Inc.,
First Union Capital Markets Corp., PaineWebber, Inc., and Sutro & Co., Inc.
The Company has applied to have the preferred shares listed on the New York
Stock Exchange under the symbol, "OPrB."
Commenting on the offering, Tom A. Lewis, Chief Executive Officer stated,
"We are pleased to have been able to offer retail investors the ability to
lock in an attractive dividend on preferred equity. Adding preferred stock to
our capital structure provides us with additional flexibility to fund our real
estate growth program. The acquisition environment in our freestanding retail
market has been very positive and we have been successful in achieving lease
yields in the 10.3% to 11.0% range. With this offering we still maintain one
of the most conservative balance sheets in our industry. Net proceeds from
this offering will be used to reduce short-term corporate borrowings under our
$170 million unsecured credit facility."
These securities are offered pursuant to a Registration Statement that has
been declared effective by the Securities and Exchange Commission. Shares of
the Company's preferred stock are only offered by means of the prospectus
included in the Registration Statement and the prospectus supplement related
to the offering. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of these
securities in any state where the offer, solicitation or sale of these
securities would be unlawful.
Realty Income is "The Monthly Dividend Company," a New York Stock Exchange
real estate company dedicated to providing common stockholders with dependable
monthly income. The monthly income is supported by the cash flows from 1,021
retail properties under long-term lease agreements with leading regional and
national retail chains. The Company is an active buyer of net-leased retail
properties nationwide.
SOURCE Realty Income Corporation
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Related links:
http://www.realtyincome.com
CONTACT:
Tere Miller, Vice President Corporate
Communications of Realty Income Corporation, 760-741-2111, ext.
177
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charge by calling our toll-free investor hotline number:
888-811-2001, or through the internet at
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