American Realty Capital Properties Adds $250 Million Of Commitments To Existing Credit Facility, Increasing Facility Capacity To $1.7 Billion; Closes $10 Million Convertible Senior Notes Over-allotment
Over-Allotment Increases Notes Offering Proceeds to $310 Million
NEW YORK, Aug. 2, 2013 /PRNewswire/ -- American Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) announced today that it had received additional financing commitments totaling $250.0 million under its existing credit facility, including a $200.0 million commitment from a new syndicate lender. With these additional commitments, the total amount of funding available to ARCP under the credit facility will increase to $1.7 billion, subject to customary conditions. The facility also has an accordion feature that allows ARCP, with additional commitments, to borrow up to $2.5 billion. (Photo: http://photos.prnewswire.com/prnh/20120529/NY15147LOGO ) ARCP also announced that it had sold an additional $10 million in 3.00% Convertible Senior Notes due 2018 (the "Notes") pursuant to the underwriters' partial exercise of an over-allotment option ARCP granted to the underwriters under the previously disclosed July 23, 2013 underwriting agreement. The underwriters provided notice of their partial exercise of the over-allotment option on July 29, 2013. As a result of the completed Notes offering and partial exercise of the over-allotment option, ARCP received $299.925 million in aggregate net proceeds from the sale of the Notes and intends to use the net offering proceeds (a) to repay outstanding indebtedness under its existing credit facility (which will increase the availability of funds under the facility); and (b) for other general corporate purposes which include investing in properties in accordance with its investment objectives. Nicholas S. Schorsch, Chairman and Chief Executive Officer of ARCP added, "We appreciate the support of our lending group with $250 million of additional commitments and welcome a new lender to our credit facility. Additionally, completing our Convertible Senior Notes offering gives ARCP significant additional capital at a very competitive price. This will enable us to continue to execute our acquisition program on a basis that is accretive to our earnings and consistent with our long-term plan to ladder our borrowings. This $310 million of long-term, fixed rate debt financing cements our track record as an unsecured debt issuer." J.P. Morgan, Citigroup, Barclays, BMO Capital Markets and KeyBanc Capital Markets acted as joint bookrunners for the Notes offering. JMP Securities, Ladenburg Thalmann & Co. Inc. and RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC, acted as co-managers for the Notes offering.