I was in the middle of answering this when that PITA Security Shield fake virus reared its ugly head on my system, but I'll add my two cents worth albiet a bit late.
The only thing I'll add to Silkrooster's reply, is to use the Arch as opposed to the Arc preset, which will keep the character verticals vertical.
In Illustrator terms the text is using a stroke with no fill. Therefore, use styles to give the text a stroke and change the fill to 0. Don't change the opacity as that will effect the style. The fill will reduce the opacity of the text without effecting the style.
For the stroke, play with the position setting as that will effect the sharpness of the corners for the stroke.