The offering, directed at qualified institutional buyers, includes an option for initial purchasers to acquire an additional $125 million in notes. The conversion price is set at approximately $72.72 per share, representing a 17.5% premium over the company's August 11 closing price of $61.89. Realty Income plans to use a portion of the proceeds to repurchase 3 million shares of its common stock and enter into capped call transactions designed to mitigate potential dilution.
Realty Income Upsizes Convertible Note Offering to $875 Million
Realty Income Corporation has upsized its convertible senior notes offering to $875 million, marking an increase from the initial $750 million target. The San Diego-based real estate firm expects to settle the issuance on August 14, 2026, with the notes maturing in August 2031 at a 3.750% interest rate.
Beyond share repurchases and transaction costs, the company intends to allocate the remaining capital toward general corporate purposes. This includes reducing existing debt, such as revolving credit facility balances, and funding ongoing property acquisitions or development projects. The notes are structured as senior unsecured obligations, with interest payable semi-annually starting February 2027.
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