In order to facilitate the funding of the recently announced
strategic acquisitions of the $2.2 billion
) and the $807 million property portfolio from GE Capital,
American Realty Capital Properties Inc.
) raised approximately $896 million as net proceeds through the
placement of common stock and convertible preferred stock.
Initially, the placements were sized at $800 million, but were
oversubscribed and upsized to $900 million. Specifically, the
company vended around 29.4 million shares of its common stock at
a price of $15.47 per share, generating gross proceeds of $455
million. The company also sold 28.4 million shares of 5.81%
Series C convertible preferred stock having an aggregate
liquidation preference of $445 million.
The acquisitions, which are expected to be accretive
immediately to American Realty following their closure, would
facilitate the company to become a fastest growing single tenant
net lease REIT.
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Particularly, the CapLease deal would help the company diversify
and expand its portfolio, boost its credit quality, diversify the
tenant base and bring on board an expert management team from
On the other hand, the deal with GE Capital to acquire the $807
million portfolio would help capitalize on 471 net lease
properties that boast several branded restaurants as tenants
Burger King Worldwide Inc.
The Wendy's Company
As a matter of fact, American Realty is focused on the
acquisition and ownership of single tenant freestanding
commercial properties subject to net leases with high credit
quality tenants. The above-mentioned deals create pro forma
enterprise value of approximately $6.9 billion for the company.
With such a move, the company is expected to ride on the growth
trajectory and benefit its shareholders simultaneously.
American Realty currently holds a Zacks Rank #4 (Sell).