Realty Income Corporation had announced the successful closing of a USD 694 million U.S. dollar-denominated, unsecured term loan (Term Loan) due January 2036 with an affiliate of The Goldman Sachs Group Inc. The Term Loan priced at an all-in fixed rate of 4.91%. In conjunction with the closing, Realty Income executed a cross-currency swap for a portion of the proceeds, swapping USD 500 million of proceeds for approximately EUR 431 million (in addition to the related interest payments) over the term of the loan. As a result of the swap, Realty Income achieved an effective blended borrowing rate of 4.34%.
The financing is associated with a broader transaction that supports San Diego Community Power, California's second largest Community Choice Aggregator serving nearly 1 million customers in the San Diego region where Realty Income is headquartered. Realty Income's role is limited to the Term Loan and related swap.
