Loan & DebtAug 12, 2026, 06:08 AM
Realty Income Prices Upsized $875M Convertible Senior Notes
AI Summary
Realty Income Corporation announced the pricing of an upsized offering of $875.0 million aggregate principal amount of 3.750% convertible senior notes due 2031. The offering size was increased from $750.0 million, indicating strong demand. The notes will mature on August 15, 2031, and have an initial conversion price of $72.72 per share, representing a 17.5% premium over the company's common stock price. Realty Income plans to use the net proceeds, estimated at $859.0 million, for general corporate purposes, including debt repayment, acquisitions, and a concurrent repurchase of approximately 3.0 million shares of its common stock for $188.7 million, alongside entering into capped call transactions.
Key Highlights
- Realty Income priced an upsized offering of $875.0 million in 3.750% convertible senior notes due 2031.
- The offering size was increased from the previously announced $750.0 million aggregate principal amount.
- Notes accrue interest at 3.750% per annum, payable semi-annually, and mature on August 15, 2031.
- Initial conversion rate is 13.7512 shares per $1,000 principal, with an initial conversion price of $72.72 per share.
- The conversion price represents a 17.5% premium over the August 11, 2026 closing stock price of $61.89.
- Net proceeds are estimated at $859.0 million, or $981.9 million if initial purchasers fully exercise their option.
- Realty Income will use $29.1 million for capped call transactions and $188.7 million to repurchase 3.0 million shares.
- The capped call transactions have an initial cap price of $83.55 per share, a 35.0% premium over the closing price.
Price Impact
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