This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

American Realty Capital Properties Offers To Purchase Cole Credit Property Trust III For $9 Billion, Creating The Largest, Highest Quality Publicly Traded Net Lease REIT

NEW YORK, March 20, 2013 /PRNewswire/ --  American Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) announced today that on March 19, 2013, it sent to the Board of Directors of Cole Credit Property Trust III, Inc. ("CCPT III") an offer to acquire 100% of the outstanding common stock of CCPT III for at least $12 per share, or $5.7 billion, in cash and stock. The transaction, valued at more than $9 billion including assumption of debt, would create the largest and highest quality publicly traded REIT in the net lease sector.

(Logo: http://photos.prnewswire.com/prnh/20120529/NY15147LOGO )

The fully financed proposal offers CCPT III stockholders:

  • Consideration: (i) $12.00 per share in cash or (ii) 0.80 shares of ARCP common stock for each share of CCPT III common stock, with a guarantee that the value of the stock consideration will not be less than $12.00 per share.  This offer represents at least a 20% premium to the original CCPT III offer price of $10.00 per share.
  • Dividend Increase: An increase of ARCP's dividend to 93 cents per share upon closing, meaning all CCPT III stockholders who elect stock consideration will receive an equivalent dividend of 74.4 cents per share ( 93 cents x 0.80), a 15% increase ( 9.4 cents per share) over CCPT III's current 65 cents per share dividend.
  • Integration and Operating Synergies:  ARCP currently estimates that general and administrative (G&A) savings will be not less than $30 million annually. The majority of CCPT III's real estate assets are net lease properties similar to ARCP's existing portfolio, resulting in seamless integration and minimal additional resources or ongoing expense requirements.

ARCP's offer is designed to provide CCPT III's stockholders with a tax-free exchange and instant liquidity, as there will be no lockup and all ARCP shares will be immediately tradable on NASDAQ with significant market support and numerous index inclusions at or subsequent to closing. The offer also provides CCPT III shareholders certainty of execution, timing and value. The cash component of ARCP's proposal is fully funded by cash on hand and borrowing capacity under ARCP's existing line of credit.

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs