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Realty Income Announces New $300 Million Credit Facility
June 20, 2005
ESCONDIDO, Calif.--(BUSINESS WIRE)--June 20, 2005--Realty Income Corporation (Realty Income), The Monthly Dividend Company(R), (NYSE:O) today announced it has entered into a new $300 million acquisition credit facility to replace its existing $250 million acquisition credit facility upon its expiration in October 2005.
Under the terms of the new credit facility, total funds available were increased by $50 million. The new credit facility borrowing rate has been reduced from the borrowing rate on the existing credit facility. Realty Income's current investment grade credit ratings will provide for financing at LIBOR (London Interbank Offered Rate) plus 65 basis points with a facility fee of 15 basis points, for all-in drawn pricing of 80 basis points over LIBOR. The term of the new facility will begin in October 2005 and extend through October 2008.
The co-lead Arranger and sole Administrative Agent for the credit facility is Wells Fargo Bank, N.A., with The Bank of New York acting as co-lead Arranger and sole Documentation Agent. They are joined by the Bank of America, N.A. and Wachovia Bank, National Association as co-Syndication Agents. Four other banks are also participants in providing the credit line: AmSouth Bank, Bank of Montreal, U.S. Bank National Association and Chevy Chase Bank, FSB.
Commenting on the transaction, Chief Financial Officer, Paul M. Meurer said, "We are pleased with the pricing improvements and expansion of our unsecured credit facility. The new facility offers us greater financial flexibility, a lower cost of funds and continued access to capital. This will provide us with the funds to continue to increase the size of our real estate portfolio, which is fundamental to our goal of regularly increasing the amount of the monthly dividend we pay to our shareholders."
Realty Income is The Monthly Dividend Company(R), a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date the Company has declared 420 consecutive monthly dividend payments throughout its 36-year operating history. The monthly income is supported by the cash flow from over 1,500 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is an active buyer of net-leased retail properties nationwide.
Note to Editors: Realty Income press releases are available at no charge by calling our toll-free investor hotline number: 888-811-2001, or through the Internet at http://www.realtyincome.com/Investing/News.html.
Statements in this press release, which are not strictly historical, are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, the availability of capital to finance planned growth, property acquisitions and the timing of these acquisitions, charges for property impairments, the outcome of any legal proceedings to which the Company is a party, and the profitability of the Company's subsidiary, Crest Net Lease, as described in the Company's filings with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly rele
ase the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.