American Realty offers new $225 million seven-year convertibles, $150 million add-on to 3% paper

By Rebecca Melvin

New York, Dec. 4 - American Realty Capital Properties Inc. launched an offering of $225 million of new seven-year convertible notes that were seen pricing ahead of the open on Thursday and talked at a 3.75% coupon and a 15% initial conversion premium.

The registered deal has a 15% greenshoe.

American Realty also said that it planned to price $150 million of its 3% convertibles due Aug. 1, 2018 in an add-on at the same time.

The registered deals are being sold via bookrunners Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.

Capital One Securities and JMP Securities are acting as co-managers.

Proceeds will be for repayment of debt and general corporate purposes.

Completion of the deals is not contingent upon one another.

The new notes are non-callable for life with no puts.

The add-on notes are also non-callable. The add-on has a $22.5 million greenshoe.

American Realty is a New York-based real estate investment company with a focus on single-tenant freestanding commercial properties.

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