Global law firm Proskauer advised American Realty Capital Properties, Inc. (ARCP) and its wholly owned subsidiary, Clark Acquisition, LLC, in connection with a private offering of $2.55 billion aggregate principal amount of senior unsecured notes consisting of $1.3 billion aggregate principal amount of 2.000% senior notes due 2017, $750.0 million aggregate principal amount of 3.000% senior notes due 2019 and $500.0 million aggregate principal amount of 4.600% senior notes due 2024. We have been advised that this offering constituted the second largest REIT capital markets transaction of any type ever consummated.
The net proceeds from the offering were used primarily to fund the cash consideration, fees and expenses relating to the acquisition by ARCP of Cole Real Estate Investments, Inc. (Cole), pursuant to the merger of Cole with and into Merger Sub, with Merger Sub surviving, and repayment of Cole’s credit facility. The remaining portion of the net proceeds from the offering was used primarily to repay amounts outstanding under ARCP OP’s senior credit facility.
The Proskauer team was led by partners Pippa Bond (Capital Markets) and Steve Lichtenfeld (Capital Markets) and included senior counsel Steve Fishman (Capital Markets) and associates Jillian Gaffield (Capital Markets), Logan Dolph (Corporate) and Aditi Sherikar (Corporate), with support from Andy Bettwy (Finance), Les Loffman (Tax), Eric Remensperger (Real Estate), Tim Donovan (Tax), Stephen Brecher (ERISA), Jamie Bowles (Tax), Andrea Hwang (Finance) and Kevin Wilkins (Real Estate).
Proskauer has also represented ARCP in several recently announced acquisitions, including its recently completed acquisition of all of the outstanding shares of Cole Real Estate Investments, Inc. for $11.2 billion, its acquisition of all of the outstanding shares of American Realty Capital Trust IV for $3.1 billion, which closed in January 2014, and its $2.2 billion acquisition of CapLease, Inc., which closed in November 2013.
