By Angela McDaniels and Rebecca Melvin
Tacoma, Wash., July 23 - American Realty Capital Properties Inc. priced $300 million of five-year convertible senior notes on Tuesday at par to yield 3% with an initial conversion premium of 15%, according to a company news release.
The registered deal has a $30 million greenshoe.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, BMO Capital Markets and KeyBanc Capital Markets are the joint bookrunners.
The notes may be converted at any time beginning Feb. 1, 2018. Prior to that date, they are convertible only if the closing share price exceeds 130% of the conversion price, if the trading price of the notes is less than 98% of the product of the closing share price and the conversion rate, if the notes are called for redemption or if certain corporate events happen.
Conversions can be settled in cash, stock or a combination of stock and cash at the company's option.
Price talk was revised during marketing Tuesday to a 3% coupon and 15% initial conversion premium from initial talk of a 2.5% to 3% coupon and a 20% to 25% premium, according to market sources.
The notes are non-callable and have takeover protection. There is a change-of-control put option at par.
Proceeds will be used to repay debt under the company's existing senior secured revolving credit facility and for other general corporate purposes, including investing in properties in accordance with investment objectives.
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: | $300 million
|
| Greenshoe: | $30 million
|
| Maturity: | Aug. 1, 2018
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, BMO Capital Markets, KeyBanc Capital Markets
|
| Co-managers: | JMP Securities, Ladenburg Thalmann & Co. Inc., RCS Capital
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 15%
|
| Conversion price: | $16.72
|
| Conversion ratio: | 59.805
|
| Call option: | No
|
| Put option: | At par only upon a fundamental change
|
| Takeover protection: | Yes
|
| Contingent conversion: | Yes, at 130% prior to Feb. 1, 2018
|
| Price talk: | 3%, up 15%; revised from 2.5%-3%, up 20%-25%
|
| Pricing date: | July 23
|
| Settlement date: | July 29
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: ARCP
|
| Stock price: | $14.54 at close July 23
|
| Market capitalization: | $2.25 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
