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Subsequent Events
9 Months Ended
Sep. 30, 2013
Subsequent Events  
Subsequent Events

23.            Subsequent Events

 

In October 2013, we declared the following dividends, which will be paid in November 2013:

 

-                    $0.1818542 per share to our common stockholders;

-                    $0.140625 per share to our Class E preferred stockholders; and

-                    $0.138021 per share to our Class F preferred stockholders.

 

In October 2013, we issued 9,775,000 shares of common stock at a price of $40.63 per share, including 1,275,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares.  After underwriting discounts and other estimated offering costs of $18.8 million, the net proceeds of approximately $378.4 million were used to repay a portion of the borrowings under our acquisition credit facility, which were used to fund property acquisitions.

 

In October 2013, we amended our credit facility by increasing the borrowing capacity by $500 million to $1.5 billion.  All other material business terms of the credit facility remain unchanged.

 

A discussion of certain legal proceedings related to our acquisition of ARCT, including the consolidated class action in the Circuit Court for Baltimore City, Maryland captioned In re American Capital Realty Trust, Inc. Shareholder Litigation, No. 24-C-12-005306 (the “Maryland State Action”), can be found under Part I, Item 3 “Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2012.  By order dated July 23, 2013, the Maryland state court preliminarily approved the settlement set forth in the stipulation of the parties, preliminarily certified the class, and set a settlement hearing for October 24, 2013, at 9:30 a.m. Pursuant to the Maryland state court’s preliminary approval order, ARCT provided notice to its stockholders regarding the proposed settlement. At the settlement hearing on October 24, 2013, the Maryland state court certified the class, approved the settlement set forth in the stipulation as fair, reasonable, and adequate to ARCT’s shareholders, and entered final judgment dismissing the Maryland State Action with prejudice. In addition, the Maryland state court approved $512,751 in plaintiffs’ attorneys’ fees and expenses, to be paid pursuant to the parties’ stipulation, of which, approximately 25% would be paid by Realty Income and the remainder to be paid by ARCT’s insurer.