Financing ·
Realty Income Corporation issued $1.0 billion principal amount of 3.750% Convertible Senior Notes due 2031 in a…
ORealty Income Corp
Realty Income Corporation issued $1.0 billion principal amount of 3.750% Convertible Senior Notes due 2031 in a private offering to qualified institutional buyers under Rule 144A on August 14, 2026. The issuance included the full exercise of a $125 million option granted to initial purchasers. Net proceeds totaled approximately $981.9 million after deducting discounts and expenses. The company used $33.2 million to purchase capped call transactions with an initial cap price of $83.55 per share, representing a 35% premium over the August 11 closing stock price of $61.89. Additionally, approximately $188.7 million was used to repurchase roughly 3.0 million shares of common stock concurrently with pricing. The notes carry an initial conversion rate of 13.7512 shares per $1,000 principal amount, equating to a conversion price of approximately $72.72 per share. Interest accrues at 3.750% annually, payable semi-annually on February 15 and August 15, beginning in 2027. The company intends to use the remaining net proceeds for general corporate purposes, including debt repayment or property acquisitions. Realty Income is a real estate investment trust that owns and operates a portfolio of over 15,500 commercial properties across the United States and internationally.