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July 23, 2013 /PRNewswire/ -- American Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) announced today that it priced its previously announced underwritten public offering of
$300.0 million Convertible Senior Notes due 2018 ("Notes"). Additionally, ARCP granted the underwriters a 30-day option to purchase up to an additional
$30.0 million of additional Notes, solely to cover over-allotments, if any.
The Notes will pay interest semi-annually at a rate of 3.00% per annum and will mature on
August 1, 2018. The holders may elect to convert the Notes into cash, ARCP's common stock or a combination thereof, at ARCP's option, in limited circumstances prior to
February 1, 2018 and may convert the Notes at any time into such consideration on or after
February 1, 2018. The initial conversion rate will be 59.8050 shares of ARCP's common stock per
$1,000 principal amount of Notes (equivalent to an initial conversion price of approximately
$16.72 per share of ARCP's common stock, which represents a 15.0% premium to today's closing price of ARCP's common stock), subject to adjustment in certain circumstances.
ARCP intends to use the net proceeds of the offering (a) to repay outstanding indebtedness under its existing senior secured credit facility (which will increase the availability of funds under such credit facility) and (b) for other general corporate purposes which includes investing in properties in accordance with its investment objectives.
The settlement of the Notes offering is expected to occur on or about
July 29, 2013, subject to satisfaction of customary market and other closing conditions.
J.P. Morgan, Citigroup, Barclays, BMO Capital Markets and KeyBanc Capital Markets are acting as joint bookrunners for this offering. JMP Securities, Ladenburg Thalmann & Co. Inc. and RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC, are acting as co-managers for this offering.