American Realty Capital Properties, Inc. (ARCP) announced that its operating partnership, ARC Properties Operating Partnership (ARCP OP), and its subsidiary, Clark Acquisition, have priced a private offering of $2.55 billion aggregate principal amount of senior unsecured notes consisting of $1.3 billion aggregate principal amount of 2.000 percent senior notes due 2017, $750.0 million aggregate principal amount of 3.000 percent senior notes due 2019 and $500.0 million aggregate principal amount of 4.600 percent senior notes due 2024.
According to a release, the offering of the Notes is expected to settle on February 6, subject to customary closing conditions. The net proceeds from the offering will be deposited into an escrow account. Upon release from escrow, the Issuers intend to use a portion of the net proceeds to fund the cash consideration, fees and expenses relating to the previously announced acquisition by ARCP of Cole Real Estate Investments, Inc., pursuant to the merger of Cole with and into Merger Sub, with Merger Sub surviving, and repayment of Cole's credit facility. The Issuers intend to use the remaining portion of the net proceeds from the offering to repay amounts outstanding under ARCP OP's senior credit facility. Amounts repaid under ARCP OP's senior credit facility are expected to be redrawn to repay approximately $730.0 million of commercial mortgage backed securities and other mortgage obligations.
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