Seeking Alpha

Realty Income upsizes secondary to 8.5M shares

  • The Monthly Dividend Company (O) is off 1.8% premarket to $40.50 after upsizing its secondary by 2M shares and pricing the offering at $40.63. Net proceeds will be about $329M.
  • The cash will go towards paying down the company credit line until the funds are needed for new acquisitions.
  • Press release.
Comments (3)
  • 4n7sjkl
    , contributor
    Comments (89) | Send Message
     
    They would have done better by the shareholders had they done it when the stock was trading at around $55.00/share.
    22 Oct 2013, 09:21 AM Reply Like
  • Palladium31
    , contributor
    Comments (535) | Send Message
     
    They didn't do it back in May because they didn't acquire $503M in properties at that time. This actually looks like a good transaction for shareholders. I just posted an instablog on this.
    22 Oct 2013, 11:33 AM Reply Like
  • marialexus
    , contributor
    Comments (9) | Send Message
     
    I don't know the mechanics of these offerings but I would have thought it could have been priced higher. I hope this leads to higher dividends in the future and not more dilution.
    22 Oct 2013, 12:27 PM Reply Like
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