American Realty Capital Trust Inc., New York, has withdrawn its registration statement connected with a possible secondary offering of the company's common stock, stating it was happy with the results of a tender offer to repurchase existing shares.
Back in February, as part of its board's decision to internalize the real estate investment trust's management services, ARCT filed a Form S-11 with the Securities and Exchange Commission looking to offer up to 6.6 million shares of its common stock, with an overallotment of an additional 990,000 shares. It also looked to list the stock on Nasdaq.
At the same time, ARCT announced a tender offer to buy between $200 million and $250 million of outstanding common stock.
In a press release, William Kahane, CEO and president of ARCT, said, “Given that we are pleased with the results of our tender offer, we have elected to withdraw the Registration Statement because we do not believe that we need the proceeds from an equity offering at this time." He added, “The withdrawal of the registration statement is consistent with the public interest and the protection of our investors.”
ARCT said 28.6 million shares of its common stock were tendered under the "Dutch Auction" offer. The company will purchase almost 21 million of those at a price of $10.50 per share. The aggregate cost of the purchase, minus fees and expenses is $220 million.
The internalization and listing of ARCT on Nasdaq took place on March 1. Its common stock has closed at $10.50 or better only on two days—March 5 and 6.
ARCT owns single tenant free standing commercial real estate properties.
