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American Realty Capital Properties Announces Successful Completion Of Previously Announced $900 Million Private Placement Of Common Stock And Convertible Preferred Stock

Stocks in this article: ARCP LSE

NEW YORK, June 10, 2013 /PRNewswire/ -- American Realty Capital Properties, Inc. ("ARCP" or the "Company") (NASDAQ: ARCP) announced today the successful completion on June 7, 2013, of two previously announced private placement transactions, pursuant to which ARCP sold approximately 29.4 million shares of its common stock at a price of $15.47 per share for gross proceeds of $455 million, and approximately 28.4 million shares of 5.81% Series C convertible preferred stock with an aggregate liquidation preference of $445 million (collectively, the "Placements"). Net proceeds from the Placements of approximately $896 million fully fund ARCP's working capital needs and the common equity component of recently announced strategic acquisitions, including an $807 million property portfolio being acquired from GE Capital and the $2.2 billion acquisition of CapLease, Inc. ("CapLease") (NYSE: LSE).

The Placements, originally intended to be $800 million, were oversubscribed and upsized to $900 million, and were led by existing institutional stockholders in ARCP.

"This outstanding execution has allowed the Company to raise equity to fund fully two important strategic and accretive transactions, namely CapLease and the GE Capital portfolio," noted Nicholas S. Schorsch, Chairman and CEO of ARCP.  "With the Placements, we have satisfied our target equity raise for these and our additional pipeline acquisitions,resulting in a leverage neutral impact of these acquisitions on our balance sheet on a weighted average basis, and eliminated any uncertainty regarding the sources of funding for these announced and additional pipeline purchases. This recent capitalization activity further positions the Company to continue to focus on our four-pronged growth strategy: contractual rental growth, diversification of our credit quality, organic and granular acquisitions, and strategic corporate and portfolio combinations through M&A activities."

Added Brian S. Block, Chief Financial Officer of ARCP, "Due to the strong institutional support for our Company and demand for our equity, we have been able to place this equity at an exceedingly low cost when compared to market norms.  The demand for this equity placement, especially given its size, demonstrates the attractiveness of ARCP's property portfolio and management team, the positive market response to our growth strategy, built upon an active and accretive acquisition program, and the strength of our balance sheet and capital structure."

RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC and RCS Capital Corporation (NYSE: RCAP), and JMP Securities LLC served as co-placement agents in connection with the Placements.

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