By Aleesia Forni
Virginia Beach, Feb. 5 - American Realty Capital Properties Inc. detailed its $2.55 billion sale of senior notes, according to a market source.
The issue included $1.3 billion of 2% senior notes due 2017 priced with a spread of Treasuries plus 137.5 basis points, or 99.971 to yield 2.01%.
There was also $750 million of 3% five-year senior notes, which were sold at 162.5 bps over Treasuries. Pricing was at 99.591 to yield 3.089%.
A $500 million issue of 4.6% senior notes due 2024 was priced at Treasuries plus 200 bps, or 99.841 to yield 4.62%.
Upon release from escrow, proceeds will be used to fund the acquisition of Cole Real Estate Investments, Inc. and to repay Cole's credit facility. Amounts repaid under the credit facility are expected to be redrawn to repay about $730 million of commercial mortgage-backed securities and other mortgage obligations.
The issuing entities are the operating partnership, ARC Properties Operating Partnership, LP, and its wholly owned subsidiary, Clark Acquisition, LLC.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
American Realty Capital is a self-managed publicly traded Maryland corporation focused on acquiring and owning single-tenant freestanding commercial properties.
| Issuer: | American Realty Capital Properties Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.55 billion
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Pricing date: | Feb. 4
|
| Settlement date: | Feb. 6
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Notes due 2017
|
| Amount: | $1.3 billion
|
| Maturity: | Feb. 6, 2017
|
| Coupon: | 2%
|
| Price: | 99.971
|
| Yield: | 2.01%
|
| Spread: | Treasuries plus 137.5 bps
|
|
|
| Notes due 2019
|
| Amount: | $750 million
|
| Maturity: | Feb. 6, 2019
|
| Coupon: | 3%
|
| Price: | 99.591
|
| Yield: | 3.089%
|
| Spread: | Treasuries plus 162.5 bps
|
|
|
| Notes due 2024
|
| Amount: | $500 million
|
| Maturity: | Feb. 6, 2024
|
| Coupon: | 4.6%
|
| Price: | 99.841
|
| Yield: | 4.62%
|
| Spread: | Treasuries plus 200 bps
|
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