ESCONDIDO, Calif., July 27 /PRNewswire/ -- Realty Income Corporation
(NYSE: O) (Realty Income), "The Monthly Dividend Company," today announced the
pricing of $30 million of its Class C Cumulative Redeemable Preferred Stock at
$25 per share. The offering is anticipated to close on July 30, 1999.
Dividends on the Class C preferred stock will be paid monthly at a rate of
9 1/2% per annum which is equivalent to approximately $2.375 per share on an
annualized basis. The first dividend payment will be on August 31, 1999. 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 July 30, 2004.
The offering was underwritten by Merrill Lynch & Co., A.G. Edwards & Sons,
Inc., EVEREN Securities, Inc., First Union Capital Markets Corp., PaineWebber
Incorporated, Salomon Smith Barney, and Sutro & Co. Incorporated. The Company
has applied to have the preferred shares listed on the New York Stock Exchange
under the symbol, "OPrC."
Commenting on the offering, Tom A. Lewis, Chief Executive Officer stated,
"We are pleased to offer retail investors another investment vehicle that
provides them with dependable monthly income. Our Series C preferred stock,
paying a monthly dividend at a rate of 9 1/2% per annum, also allows investors
to lock in an attractive, long-term dividend yield. The net proceeds from
this preferred stock offering will be used to reduce short-term corporate
borrowings under our $170 million unsecured acquisition 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 shareholders with dependable
monthly income. The monthly income is supported by the cash flows from 1,071
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:
Gary Malino, Senior Vice President, Chief
Financial Officer of Realty Income Corporation, 760-741-2111,
ext. 142
NOTE TO EDITORS: Realty Income press releases are available at no
charge by calling the Company's toll-free investor hotline
number: 888-811-2001, or through the internet at
http://www.realtyincome.com.
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