NEW YORK CITY-American Realty Capital Properties Inc. has closed its initial public offering at a price of $12.50 per share, SEC filings show. After launching the IPO in July 2011, the company has sold a total of 5.58 million shares of common stock for proceeds of $69.8 million, and declared an annual dividend of $0.875 per share.
“This was an extraordinary execution,” says Nicholas S. Schorsch, chairman and CEO of the company, in a prepared statement following the closing. “We succeeded in completing our IPO in the midst of a substantial economic correction and a series of natural disasters which affected New York City. This is a strong testament to both our team and the quality of the offering.”
The shares were sold through the company’s affiliated broker/dealer, Realty Capital Securities LLC and Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. as the co-dealer managers of the offering. The shares began trading on the NASDAQ capital market under “ARCP” on Sept. 7.
The corporation, which focuses on net-leasing single-tenant, freestanding properties like pharmacies, banks, restaurants, convenience stores in high-traffic locations, intends to use the net proceeds from the offering to “make property acquisitions, payoff property-related indebtedness and related fees and expenses, and for general working capital purposes,” according to ARCP. The corporation also intends to qualify as a REIT.
“In a period of historically low interest rates, and substantial market volatility, strong real estate locations leased to investment grade tenants should enable our shareholders to preserve capital, as well as pay and cover our 7% distribution,” Schorsch adds.
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