American Realty outlines expected pricing on term loan and bridge loan

By Sara Rosenberg

New York, Nov. 19 - American Realty Capital Properties Inc. said in an S-4/A filed with the Securities and Exchange Commission on Tuesday that its proposed $2,175,000,000 five-year senior secured term loan is expected to be priced at Libor plus 300 basis points with a 1% Libor floor.

In addition, the company said its $575 million senior unsecured bridge loan is priced at Libor plus 500 bps with a 1% Libor floor. The spread will increase by 50 bps every 90 days.

Proceeds will be used to help fund the company's merger with Cole Real Estate Investments Inc. and to refinance debt of the acquired company.

If the company incurs or issues any other debt or issues additional equity after the date of the commitment letter and prior to the closing of the Cole merger, the term loan and bridge loan amounts could be reduced.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Capital One provided the debt commitments.

American Realty is a New York-based real estate investment company.

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