AMRC announced the pricing of US$300 million convertible senior notes
American Realty Capital Properties, Inc. announced the pricing of their underwritten public offering for US$300 million Convertible Senior Notes which are due 2018. ARCP said that they have granted the underwriters for the offering a 30-day option to purchase an additional US$3O million of additional Notes. The purchase is to cover any over-allotments made.
Initial conversion rate for the offering for the 59.8050 shares of American Realty Capital Properties common stock per $1,000 principal amount of Notes. The equivalent to the initial conversion price was tagged at US$16.72 per share of ARCP's common stock. The conversion represents 15.0% premium to the closing price of ARCP's common stock. The pricing is subject to adjustment dependent on certain circumstances.
ARCP said that they will use the net proceeds from the offering to repay the company's outstanding debts made under its senior credit facility. The company plans to increase the availability of funds with their senior credit facility. ARCP also said that the proceeds will also be used for general corporate purposes like investing in properties.
Citigroup, BMO Capital Markets, JP Morgan & Chase, Barclays and KeyBanc Capital Markets were hired to act as the joint book runners for the ARCP offering. Ladenburg Thalmann & Co. Inc., JMP Securities and RCS Capital were hired to as the co managers for the offering.