Realty Income raises $875 million via convertible notes

Realty Income Corp. said on Monday it has priced an offering of $875 million in convertible senior notes due 2032.

The company, a U.S.-based real estate investment trust (REIT) specializing in commercial properties, said the notes will bear interest at a rate to be determined and will be convertible into cash, shares or a combination of both at the company's option.

Proceeds from the offering will be used for general corporate purposes, including potential debt repayment, acquisitions or other investments aligned with the company's growth strategy.

The notes are expected to be issued on or about June 18, subject to customary closing conditions. Realty Income did not disclose the interest rate or conversion terms in its filing.

Convertible debt allows issuers to raise capital at lower interest costs compared with traditional bonds, as investors accept the option to convert the debt into equity if the company's shares appreciate. The REIT has a history of using such instruments to fund expansion while managing its balance sheet.

Realty Income, which owns a diversified portfolio of commercial properties leased to tenants across multiple sectors, did not specify the final use of proceeds beyond general corporate purposes in its announcement.