The company allocated $33.2 million of the proceeds to enter into capped call transactions, setting a cap price of approximately $83.55 per share. This figure represents a 35% premium over the company's August 11, 2026, closing stock price of $61.89. Additionally, Realty Income deployed $188.7 million to repurchase 3 million shares of its common stock concurrently with the note pricing.
In section Releases
Realty Income Closes $1 Billion Convertible Notes Offering
San Diego-based Realty Income Corporation has finalized a $1 billion private offering of 3.750% convertible senior notes due in 2031. The transaction includes the full exercise of a $125 million option by initial purchasers, providing the firm with roughly $981.9 million in net proceeds to bolster its capital structure.
Management intends to direct the remaining capital toward general corporate objectives. These include paying down existing debt from revolving credit facilities and commercial paper programs, as well as funding property acquisitions, redevelopments, and potential business combinations. The notes were issued to qualified institutional buyers under Rule 144A and remain unregistered under the Securities Act.
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