Realty Income (NYSE:O) is knocking on the door of the markets to shore up its capital foundation. The company announced that it is floating 6.5 million shares of its common stock in an underwritten public issue. In addition, the company intends to grant the offering's underwriters a 30-day purchase option for up to an additional 975,000 shares to cover oveallotments, if any.

Realty Income said it expects to use the proceeds of the issue to retire debt from its $1 billion acquisition facility. That credit line has been, and will be, used to fund real estate assets.

The joint book-running managers of the offering are Bank of America's Merrill Lynch, Morgan Stanley, JPMorgan Chase's J.P. Morgan, Leucadia's Jefferies, Royal Bank of Canada arm RBC Capital Markets, UBS Investment Bank, and the Securities wing of Wells Fargo.

At the moment, Realty Income has just over 51 million shares outstanding, and its stock most recently closed at $41.25 per share.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.