American Realty bonds add a point with shares lower; market quiet ahead of holiday

By Rebecca Melvin

New York, Dec. 24 – American Realty Capital Properties Inc.’s 3% convertibles changed hands a point higher on Wednesday despite lower shares after the New York-based real estate investment company provided a business update, including news that it has received a waiver from lenders that reduces its maximum credit facility debt.

The company said that under a new agreement with lenders its maximum debt under its current credit facility is reduced to $3.6 billion. It also said that it has received an extension for reporting third- and fourth-quarter results in light of recent accounting irregularities.

The company has also agreed not to pay a dividend to shareholders until it can report quarterly results. It plans to pay a dividend that is in line with peers.

Otherwise U.S. convertibles were quiet Wednesday with ranks of market players thinned ahead of the Christmas holiday. Those still at their desks mostly watched stocks and did housekeeping.

The financial markets closed early Wednesday ahead of Christmas Eve and will remain closed on Thursday for Christmas.

Even though markets will reopen on Friday, the year is done for many market players, with little to no activity expected in either the primary or secondary convertibles markets before the New Year.

“There’s absolutely zero,” a New York-based trader said about market action Wednesday morning.

With a few exceptions, the market was mostly quiet for the week through Wednesday.

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