NEW YORK CITY—What began as a 100-million-share stock saleearlier this week has ended up totaling 138 million shares when theunderwriters on American Realty CapitalProperties' public offering had their say. The netlease REIT said Thursday evening that underwriters hadfully exercised their overallotment option, buying an additional 18million shares at $12 apiece, culminating one of the largestREIT equity offerings on record.

ARCP is expecting total net proceeds of $1.59 billion from theupsized stock sale, which law firm Proskauer Rosesaid was the third largest stock offering in REIT history at 120million shares before the underwriters exercised their option.Despite its coinciding with the acquisition announced last week ofmore than 500 Red Lobster properties in a $1.5-billionsale-leaseback, the stock sale will not be used to fund that deal,but instead will go for paying down debt and other generalcorporate purposes.

As GlobeSt.com reported earlier this week, the Red Lobster SLBwill be funded via recycled capital from the sale of substantiallyall of ARCP's multi-tenant shopping center portfolio toBlackstone Real Estate Partners VII for $1.98 billion in cash. The11.7-million-square-foot portfolio came as part of ARCP's$11-billion merger with Cole Real Estate Investments, which closedthis past February.