By Rebecca Melvin
New York, Dec. 5 - American Realty Capital Properties Inc. priced an upsized $350 million of seven-year convertible notes ahead of the open Thursday at par to yield 3.75% with an initial conversion premium of 15%, according to a syndicate source.
The registered, off-the-shelf deal was initially talked at $225 million in size, and pricing came at the talked price points.
There is a $52.5 million greenshoe.
American Realty also priced an upsized $250 million add-on to its 3% convertibles due Aug. 1, 2018.
Bookrunners were Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds will be for repayment of debt and general corporate purposes.
The new notes are non-callable for life with no puts.
American Realty is a New York-based real estate investment company with a focus on single-tenant freestanding commercial properties.
| Issuer: | American Realty Capital Properties Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million, upsized from $225 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | Dec. 15, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Capital One Securities Inc., JMP Securities LLC
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 15%
|
| Conversion price: | $15.15
|
| Conversion ratio: | 66.0262 shares
|
| Call option: | No
|
| Puts: | No puts
|
| Price talk: | 3.75%, up 15%
|
| Pricing date: | Dec. 5
|
| Settlement date: | Dec. 10
|
| Stock symbol: | Nasdaq: ARCP
|
| Stock price: | $13.17 at close Dec. 4
|
| Distribution: | Registered, off the shelf
|
| Market capitalization: | $2.4 billion
|
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