Realty Income slips after announcing $750 mln convertible offering
O•Planned use of proceeds
The company said it intends to use net proceeds for general corporate purposes, including repayment or repurchasing debt, foreign currency swaps or other hedging instruments, development, redevelopment and acquisition of additional properties, among other uses.
It also plans to use some proceeds to pay the cost of capped call transactions and repurchase its shares from initial purchasers of the CBs to facilitate hedging.
Company and stock context
San Diego, California-based Realty Income has about $58 bln market cap.
O shares closed flat at $61.89 on Tuesday. Year to date, the stock is up 9.8%, in line with the roughly 10% advance in the S&P 500 Real Estate sector .SPLRCR.
The average rating of 26 analysts is "hold"; median price target is $68, per LSEG data.
Shares slip after planned capital raise
Realty Income's O.N shares were down 0.2% at $61.75 post-market after the planned capital raise news.
Commercial REIT announced a private offering of $750 mln convertible bonds (CBs) due 2031.
