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Realty Income Announces New and Expanded $425 Million Credit Facility

^{Published on 2010-12-13 13:15:24 - Market Wire}
 

ESCONDIDO, Calif.--([ BUSINESS WIRE ])--Realty Income Corporation (Realty Income), The Monthly Dividend Company^®, (NYSE:O), announced today that the Company has entered into a new $425million unsecured acquisition credit facility to replace its existing $355million acquisition credit facility.

Under the terms of the new credit facility, total funds available were increased by $70 million to $425million, plus an additional $200million accordion expansion feature. The initial term of the new facility runs through March 31, 2014 with two, one-year extension options thereafter. Under the new credit facility, our current investment grade credit ratings will provide for a borrowing rate of LIBOR (London Interbank Offer Rate) plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR. Realty Income currently has no borrowings on this new credit facility and has full access to the facility for new property acquisitions.

The Sole-lead Arranger and Administrative Agent for the credit facility is Wells Fargo Securities LLC, with Bank of America, N.A. and Regions Bank as co-Syndication Agents, The Bank of New York Mellon as Documentation Agent, and Union Bank, N.A., U.S. Bank National Association, BB&T Capital Markets, Capital One Bank and Raymond James as additional participants in the facility.

Commenting on the transaction, EVP, Chief Financial Officer & Treasurer Paul M. Meurer said, aWe are pleased with the expansion of our unsecured credit facility, which further enhances our liquidity and financial flexibility. We also appreciate the important relationships we have with our bank lenders, most of whom we have done business with for several years. This facility 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.a

Realty Income is The Monthly Dividend Company^®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date, the Company has declared 485 consecutive monthly dividend payments throughout its 41-year operating history and increased the dividend 59 times since Realty Incomea™s listing on the New York Stock Exchange in 1994. The monthly income is supported by the cash flow from more than 2,400 properties located in 49 states owned under long-term lease agreements with leading regional and national chains and other corporate entities. The Company is an active buyer of commercial properties nationwide.

Forward-Looking Statement

Statements in this press release, which are not strictly historical, are aforward-lookinga statements. Forward-looking statements involve known and unknown risks, which may cause the Companya™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 Companya™s subsidiary, Crest Net Lease, as described in the Companya™s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the Companya™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 release 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.

Note to Editors: Realty Income press releases are available at no charge by calling our toll-free investor hotline number: 888-811-2001, or on the Internet at [ http://www.realtyincome.com/Investing/News.html ].