Realty Income Secures $800 Million Through Dual-Tranche Bond Offering

Realty Income Corporation, the prominent US real estate investment trust, has successfully raised $800 million in new capital through a sophisticated bond issuance structured in two distinct parts. This substantial financing move highlights the company’s strategic approach to capital management in current market conditions.

The REIT implemented a two-pronged financing strategy, dividing the total amount equally between two maturity dates. The first tranche consists of $400 million in bonds carrying a 3.950% interest rate, scheduled to mature in February 2029. The second portion, also valued at $400 million, features a higher 4.500% coupon and will come due in February 2033.

Market pricing reflected typical yield curve dynamics, with the shorter-term bonds priced at 99.412% of face value to yield 4.143%, while the longer-dated securities were issued at 98.871% to... Read more...