UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
___________________
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
report (Date of earliest event reported):
February
16, 2010
American Realty
Capital Trust, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Maryland
(State
or Other Jurisdiction of Incorporation)
333-145949
|
71-1036989
|
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
106
Old York Road
Jenkintown,
PA
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19046
|
|
(Address
of Principal Executive Offices)
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(Zip
Code)
|
(215) 887-2189 (Registrant’s
Telephone Number, Including Area Code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
|
o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Item 2.01 Completion of Acquisition of
Assets.
Reckitt
Benckiser Warehouse Facility – Tooele, UT
On
February 16, 2010, American Realty Capital Trust, Inc. (the “Company”) acquired
a build-to-suit warehouse facility for Reckitt Benckiser (“RB”). The
warehouse facility is approximately 574,000 square feet, located in Tooele,
Utah, near Salt Lake City. The aggregate purchase price was
approximately $32.0 million, inclusive of all closing costs and
fees. The primary lease term under this net lease arrangement,
pursuant to which RB will be required to pay all operating expenses and capital
expenditures in addition to base rent, is 12.3 years, with a remaining lease
term of approximately 12 years, and provides for annual rent escalations of 2%
each year. The lease also provides for three 5 year renewal
options. The average annual base rent on a straight-line basis over
the initial lease term is approximately $2.6 million.
The
purchase price is 50% comprised of proceeds from the sale of common shares and
50% from proceeds received from a first mortgage loan totaling approximately
$15.0 million.
Address
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City
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State
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Purchase
Price
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Compensation
to Advisor and Affiliates (1) |
3226
Sheep Lane North
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Tooele
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UT
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$ 31,748,538
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$ 461,000
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1Compensation
to advisor and affiliate includes acquisition fees and financing arrangement
fees.
Address
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City
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State
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Total
Square Feet Leased
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Rent
Per Square Foot
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Year
1 Rent
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Initial
Lease Term (Years)
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|||
3226
Sheep Lane North
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Tooele
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UT
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574,106
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$ 4.16
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$ 2,385,866
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12.3
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The Company has secured a seven-year,
non-recourse first mortgage loan from Bank of Texas. The following table
outlines the terms of the debt financing incurred in connection with acquisition
of the warehouse facility. The loan will be secured by a mortgage on the
warehouse facility.
Mortgage
Debt Amount
|
Rate
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Maturity
Date
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|||||||
$15,000,000
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6.145%(1)
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February
2017
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(1)The mortgage loan is a floating rate
loan that bears an interest rate based on LIBOR plus 2.85%.
Simultaneously with the closing of the mortgage loan the Company entered
into a swap agreement which converts the rate the Company will pay on the
mortgage loan to a fixed rate of 6.145% for the term of the loan
RB is a
world leader in manufacturing and marketing household, health and personal care
products. RB is a multinational corporation with operations in over
60 countries, manufacturing facilities in over 40 countries and sales of its
products in over 180 countries.
RB has a
strong portfolio led by 17 global Powerbrands which are: Finish, Lysol, Dettol,
Vanish, Woolite, Calgon, Airwick, Harpic, Bang, Mortein, Veet, Nurofen,
Clearasil, Strepsils Gaviscon, Mucinex and French’s. The 17
Powerbrands account for over two thirds of RB’s net revenue. RB has
an investment grade rating of A+ by Standard and Poor’s.
RB is a
U.K. listed company and is part of the top 25 of the FTSE 100, with a market cap
exceeding £20bn. The following financial information is taken
information published by the RB.
(Amounts
in millions)(1)
|
Six
Months
Ended
|
Year
Ended
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||||||||||||||
June
30, 2009
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Dec.
31, 2008
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Dec.
31, 2007
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Dec.
31, 2006
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|||||||||||||
Profit
and Loss Account
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||||||||||||||||
Total
operating income
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$
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5,650
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$
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12,214
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$
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10,580
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$
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9,149
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||||||||
Operating
profit
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1,223
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2,791
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2,468
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1,677
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||||||||||||
Retained
profit
|
406
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1,259
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1,161
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689
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As
of
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As
of
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|||||||||||||||
June
30, 2009
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Dec.
31, 2008
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Dec.
31, 2007
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Dec.
31, 2006
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|||||||||||||
Balance
Sheets
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||||||||||||||||
Total
assets
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$
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14,101
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$
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13,423
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$
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11,644
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$
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11,236
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||||||||
Long-term
debt
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10
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6
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10
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22
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||||||||||||
Shareholders’
equity
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5,313
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4,815
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4,733
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3,655
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(1)Amounts
reflect a conversion from British Pounds to U.S. Dollars at a conversion rate
specific to each period presented.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
AMERICAN
REALTY CAPITAL TRUST, INC.
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|||
Date:
February 19, 2010
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By:
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/s/
Nicholas S. Schorsch
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Name:
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Nicholas
S. Schorsch
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||
Title:
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Chief
Executive Officer and
Chairman
of the Board of Directors
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