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Realty Income has expanded its revolving credit facilities and global commercial paper programmes to a combined capacity of USD 5.5 billion, strengthening its access to capital for future growth. The revised facilities include an accordion feature that can increase borrowing capacity to USD 6.5 billion, subject to lender approvals. The company has also lowered its borrowing costs under the new arrangement while extending the maturity profile through two equal tranches maturing in 2029 and 2030. The move is aimed at enhancing liquidity and supporting future investments.
Realty Income Corporation has completed the recast and expansion of its multicurrency unsecured revolving credit facilities, increasing their total capacity to USD 5.5 billion from the earlier USD 4 billion. Alongside this, the company has also expanded the combined capacity of its global commercial paper programmes to USD 5.5 billion from the previous USD 3 billion, strengthening its liquidity position and financial flexibility.
The revised revolving credit facilities include an accordion expansion feature that allows the borrowing capacity to be increased to as much as USD 6.5 billion, subject to obtaining additional lender commitments. The facilities have been divided into two equal tranches of USD 2.75 billion each, with initial maturity dates in 2029 and 2030. Both tranches also include two six-month extension options.
The company stated that the enhanced borrowing capacity is expected to improve its ability to execute its long-term growth strategy while maintaining financial flexibility. Realty Income's Chief Financial Officer and Treasurer Jonathan Pong said the company has historically benefited from access to efficiently priced capital and that the expanded facilities would strengthen its ability to pursue growth opportunities. He also acknowledged the continued support received from the company's lending partners.
Under the revised terms, Realty Income's current A3/A- credit ratings allow it to borrow U.S. Dollar funds at 67.5 basis points above SOFR, along with a facility commitment fee of 12.5 basis points. This results in an all-in drawn pricing of 80 basis points over SOFR, representing a reduction of five basis points compared with the previous revolving credit facilities. A total of 26 lenders are participating in the facilities, with Wells Fargo Bank serving as the administrative agent.
In addition to the revised credit facilities, Realty Income expanded its unsecured global commercial paper programmes to a combined capacity of USD 5.5 billion. The programmes consist of a USD 2.75 billion U.S. commercial paper programme and a USD 2.75 billion European commercial paper programme. The company said the enlarged revolving credit facilities are expected to serve as a liquidity backstop for the repayment of notes issued under these programmes.
The latest financing initiative builds on the company's capital management efforts undertaken over the past year. Realty Income had previously expanded its aggregate credit facilities in 2025, and the latest transaction further increases its borrowing capacity while extending maturities and reducing financing costs. The company continues to use diversified funding sources to support acquisitions, portfolio expansion and refinancing requirements.
Source Reuters
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