ESCONDIDO, Calif., Oct. 23 /PRNewswire/ -- Realty Income Corporation
(Realty Income) (NYSE: O) today announced the pricing of $100 million of
Monthly Income Senior Notes due 2008. The Notes carry a coupon of 8.25% and
were priced at par which is $25 per note. Interest payments on the Notes will
be made on the 15th of each month commencing December 15, 1998.
The Monthly Income Senior Notes were purchased by individual retail
investors in an offering underwritten by Merrill Lynch & Co., A.G. Edwards &
Sons, Inc., PaineWebber, Inc., Donaldson, Lufkin & Jenrette, EVEREN
Securities, Inc., Sutro & Co. Inc., and Wheat First Union.
The Notes are rated BBB- by Standard & Poor's Ratings Group, Baa3 by
Moody's Investor Service, Inc., and BBB by Duff & Phelps Credit Rating
Company. They will be listed on the New York Stock Exchange under the symbol
"OUI".
The net proceeds from the offering will be used to repay borrowings under
the Company's $150 million unsecured credit facility and for other general
corporate purposes.
Tom A. Lewis, Chief Executive Officer of Realty Income, commented on the
offering, "We are pleased to have been able to complete this long-term
financing during a difficult period in the debt markets. The successful
completion of this transaction was due to its unique structure, the continued
support of the Company by retail investors and the strong efforts of our
investment bankers. This offering leaves the Company with access to $120
million for additional property acquisitions and has provided investors with
another investment vehicle to obtain dependable monthly income."
The Notes were priced at 8.25%. After adjusting for the Company's
treasury interest rate lock agreement, the effective interest rate to Realty
Income is 9.12%. The proceeds from the offering will be used to finance a
portion of the Company's recent acquisitions. Through the first three
quarters of 1998, Realty Income has invested approximately $140 million in 99
properties with an initial contractual lease yield of 10.4% and an average
lease term of 14.7 years.
These securities are offered pursuant to a Registration Statement that has
been declared effective by the Securities and Exchange Commission. The Notes
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 922
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, Investor
Relations of Realty Income Corporation, 760-741-2111, ext. 177
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.prnewswire.com or http://www.realtyincome.com.
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