Realty Income Corporation (Realty Income, NYSE: O) has announced the closure of a £900 million sterling-denominated unsecured term loan. The loan, which initially matures in January 2028, will be used to repay outstanding sterling-denominated borrowings on a $4.0 billion multicurrency revolving credit facility. This effectively pre-funds the refinancing of a January 2026 multi-currency term loan, which includes a £705 million sterling-denominated tranche.
The loan is structured with Realty Income's current A3/A* credit ratings, providing for a borrowing rate of 80 basis points over the sterling overnight index average (SONIA) rate. Additionally, Realty Income has executed two-year variable-to-fixed interest rate swaps, fixing the weighted average per annum interest rate at 4.3% over the initial term.
The company expressed gratitude for its longstanding partnerships with lenders and their continued support of its global platform. According to Jonathan Pong, Executive Vice President, Chief Financial Officer, and Treasurer of Realty Income, the term loan addresses an upcoming sterling-denominated term loan maturity with a lower all-in fixed rate, further enhancing the company's financial flexibility abroad.
Toronto Dominion (Texas) LLC is acting as the administrative agent, with TD Securities (USA) LLC, The Bank of Nova Scotia, BofA Securities, Inc., JPMorgan Chase Bank, N.A., and Truist Securities, Inc. serving as joint bookrunners. Additionally, TD Securities (USA) LLC, The Bank of Nova Scotia, BofA Securities, Inc., JPMorgan Chase Bank, N.A., Regions Capital Markets, Truist Securities, Inc., U.S. Bank National Association, and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch are serving as joint lead arrangers. Ten lenders, including the aforementioned institutions, BNP Paribas, and Wells Fargo Bank, National Association, are participating in the loan.
Realty Income, an S&P 500 company, has a portfolio of over 15,500 properties in all 50 U.S. states, the U.K., and seven other countries in Europe. As of September 30, 2025, the company has declared 665 consecutive monthly dividends and is a member of the S&P 500 Dividend Aristocrats index for having increased its dividend for over 30 consecutive years. Today the company's shares have moved 0.34% to a price of $57.195. For more information, read the company's full 8-K submission here.
