Realty Income closes $1B convertible notes offering

Realty Income Corporation (NYSE: O) closed a $1.0 billion private offering of 3.750% convertible senior notes due 2031, according to a press release from the company.

The offering, sold to qualified institutional buyers under Rule 144A, includes the initial $875.0 million offering and the full exercise of a $125.0 million option granted to initial purchasers. Net proceeds totaled approximately $981.9 million after deducting discounts, commissions, and estimated offering expenses.

Realty Income used approximately $33.2 million of net proceeds to fund capped call transactions with certain financial institutions. The cap price was set at approximately $83.55 per share, representing a 35% premium above the Aug. 11, 2026, closing price of $61.89 per share on the New York Stock Exchange.

The company also used approximately $188.7 million of the net proceeds to repurchase approximately 3.0 million shares of its common stock in privately negotiated transactions concurrent with the offering's pricing.

Realty Income said remaining proceeds are intended for general corporate purposes, which may include repayment or repurchase of debt, foreign currency hedging, property acquisitions, development and redevelopment, and business combination transactions.

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