Thursday, May 22, 2014

ARCP Happenings

Yesterday, May 21, 2014, American Realty Capital Properties (ARCP) announced that it was selling its multi-tenant shopping centers to affiliates of private equity giant Blackstone (BX).  Here is a Bloomberg article.  The all-cash $1.98 billion transaction is expected to close withing thirty days.  ARCP had originally planned to spin-off the shopping centers into a separate company.  ARCP plans to use a large portion of the  $2 billion to complete the acquisition of the 500 Red Lobster properties it agreed to acquire last week for $1.5 billion. 

Separately, ARCP filed yesterday to issue 100,000,000 shares of common stock.  Today, ARCP announced that it sold 120,000,000 shares at $12.00 per share, bolstering its balance sheet by an additional $1,440,000,000 before fees.  ARCP plans to use a portion of the proceeds to repay debt.

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