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ARCP selling stock to help pay for acquisitions

NEW YORK (AP) -- American Realty Capital Properties Inc. said Tuesday that it will use proceeds of nearly $900 million from two private placement stock sales to help pay for recent acquisitions.

The announcement comes one day after its real estate investment trust, American Realty Capital Trust IV Inc., said that it would pay $1.45 billion to GE Capital for properties leased mostly to restaurant chains like KFC, Burger King and Wendy's.

American Realty Capital also announced a separate $807 million deal with GE Capital for a portfolio of 471 net lease properties, also mainly leased to restaurant chains, on Friday. That came just three days after the company said that it was buying fellow REIT, CapLease in a deal the companies valued at about $2.2 billion.

New York-based American Reality Capital said it expects $455 million in gross proceeds from the sale of about 29.4 million shares of its common stock at $15.47 each. It is also selling approximately 28.4 million shares of convertible preferred stock, expected to yield proceeds of about $445 million.

Aside from helping to pay for the acquisitions, American Realty Capital said proceeds will be used for working capital needs.

Shares closed Monday at $15.47, up about 17 percent since the start of the year, but down from a recent high of $18.05, reached May 15.