Commercial REIT Launches $300M Senior Note Offering

American Realty Capital Properties announced plans to issue $300 million of convertible senior notes in an underwritten public offering.

The New York-based real estate investment trust focused on acquiring and owning single tenant commercial properties said the notes are due to mature on Aug. 1, 2018. ARCP said the notes may be converted into cash, common stock or a combination thereof in limited circumstances these prior to Feb. 1, 2018.

Also, ARCP plans on granting the underwriters a 30-day option to purchase an additional $30 million in notes, solely to cover any over-allotments.

ARCP will use the proceeds from this offering to repay outstanding indebtedness under its existing senior secured revolving credit facility, which will therefore increase the availability of funds under this credit facility. This offering will also allow ARCP to invest in other properties within the firm’s investment objectives.

JPMorgan Chase, Citigroup, Barclays, BMO Capital Markets and KeyBanc Capital Markets will act as joint bookrunners for this offering.

JMP Securities, Ladenburg Thalmann & Co., and RCS Capital, the investment banking and capital markets division of Realty Capital Securities, will act as co-managers for the senior note offering.