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American Realty Capital Properties, Inc. 4

Accession 0001144204-14-001279

CIK 0001507385operating

Filed

Jan 7, 7:00 PM ET

Accepted

Jan 8, 5:47 PM ET

Size

16.4 KB

Accession

0001144204-14-001279

Insider Transaction Report

Form 4
Period: 2014-01-03
Budko Peter M
EVP & Chief Investment Officer
Transactions
  • Other

    Operating Partnership Units

    2014-01-03+1,071,2531,071,253 total
    Exercise: $0.00From: 2015-01-03Common Stock (1,071,253 underlying)
  • Other

    Operating Partnership Units

    2014-01-03+195,978195,978 total
    Exercise: $0.00Common Stock (195,978 underlying)
  • Other

    Common Stock

    2014-01-03+757385,511 total
  • Other

    Series F Cumulative Redeemable Preferred Stock

    2014-01-03+865865 total
Holdings
  • Common Stock

    (indirect: See footnote)
    13,100
Footnotes (9)
  • [F1]Shares were acquired pursuant to a merger agreement (the "Merger Agreement") among American Realty Capital Properties, Inc. ("ARCP"), American Realty Capital Trust IV, Inc. ("ARCT IV"), American Realty Capital Properties Operating Partnership, L.P., ARCP's operating partnership (the "ARCP Operating Partnership"), American Realty Capital Operating Partnership IV, L.P. (the "ARCT IV Operating Partnership") and Thunder Acquisition LLC, a wholly owned subsidiary of ARCP ("Merger Sub"), pursuant to which ARCT IV merged with and into Merger Sub (the "Merger").
  • [F2]On January 3, 2014, the effective time of the Merger, each outstanding share of common stock of ARCT IV held by American Realty Capital Trust IV Special Limited Partner, LLC (the "Special Limited Partner") was exchanged for (i) $9.00 in cash plus (ii) 0.5190 shares of ARCP's common stock, par value $0.01 per share, and (iii) 0.5937 shares of a series of ARCP preferred stock designated as Series F Cumulative Redeemable Preferred Stock (the "Series F Preferred Stock"). At the close of business on January 3, 2014, the effective date of the Merger, the closing price of ARCP's common stock was $12.91 per share. At the close of business on January 6, 2014, the first day of trading of the Series F Preferred Stock, the closing price of the Series F Preferred Stock was $21.30 per share.
  • [F3]The Special Limited Partner is 100% owned by AR Capital, LLC ("ARC"), of which the reporting person is an equity holder. The shares of common stock, Series F Preferred Stock and OP Units held by the Special Limited Partner were distributed pro rata to the reporting person and are now owned directly.
  • [F4]Pursuant to the terms of the Amended and Restated Agreement of Limited Partnership of the ARCT IV Operating Partnership (the "ARCT IV OP Agreement Agreement"), dated as of November 12, 2012, OP units were issued to American Realty Capital Trust IV Special Limited Partner, LLC (the "Special Limited Partner"), the holder of the special limited partner interest in the ARCT IV Operating Partnership (the "SLP Interest"). The SLP Interest entitled the Special Limited Partner to receive certain distributions from the ARCT IV Operating Partnership, including a subordinated distribution of net sales proceeds resulting from an "investment liquidity event" (as defined in the ARCT IV OP Agreement).
  • [F5]The Merger constituted an "investment liquidity event" under the ARCT IV OP Agreement as a result of which the Special Limited Partner, in connection with management's successful attainment of the 6% performance hurdle and return to ARCT IV's stockholders in addition to their initial investment, was entitled to receive a subordinated distribution of net sales proceeds from the ARCT IV Operating Partnership in an amount equal to approximately $62.7 million (the "Subordinated Distribution Amount").
  • [F6]OP Units are exchangeable for cash or, at the option of the ARCP Operating Partnership, shares of ARCP's common stock on a one-to-one basis. OP Units are exchangeable, except under certain limited circumstances, beginning one year from the date of issuance and have no expiration date.
  • [F7]Pursuant to the ARCT IV OP Agreement, American Realty Capital Advisors IV, LLC (the "ARCT IV Advisor") was entitled to a "profits interest" in the form of Class B Units in the ARCT IV Operating Partnership in connection with its asset management services. The Class B Units were converted into OP Units prior to the Merger. Upon the consummation of the Merger, each ARCT IV OP Unit held by the ARCT IV Advisor was converted into 2.3961 ARCP OP Units.
  • [F8]The ARCT IV Advisor is 100% owned by ARC, of which the reporting person is an equity holder. The OP Units held by the ARCT IV Advisor were distributed pro rata to the reporting person and are now owned directly.
  • [F9]Shares held through ARC, of which the reporting person is an equity holder. The reporting person disclaims beneficial ownership of the shares except to the extent of his pecuniary interest therein.

Issuer

American Realty Capital Properties, Inc.

CIK 0001507385

Entity typeoperating

Related Parties

1
  • filerCIK 0001507385

Filing Metadata

Form type
4
Filed
Jan 7, 7:00 PM ET
Accepted
Jan 8, 5:47 PM ET
Size
16.4 KB