This Day On The Street
Continue to site
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

Stockholders Of American Realty Capital Properties And Cole Real Estate Investments Approve Merger

NEW YORK and PHOENIX, Jan. 23, 2014 /PRNewswire/ -- American Realty Capital Properties, Inc. ("ARCP") (NASDAQ: ARCP) and Cole Real Estate Investments, Inc. ("Cole") (NYSE: COLE) announced today that each company's stockholders, at separate special meetings held earlier today, have approved the proposals related to the merger of Cole with and into a wholly owned subsidiary of ARCP, pursuant to the definitive merger agreement dated as of October 22, 2013. ARCP and Cole expect to close the merger promptly, subject to customary closing conditions. Assuming completion of the transaction valued at $11.2 billion, the combined company will create the world's largest net lease REIT with an enterprise value of $21.5 billion.

(Logo: )

(Logo: )

At ARCP's stockholder meeting, approximately 98.2% of ARCP's shares voted were voted in favor of approving the issuance of ARCP common stock to the stockholders of Cole in connection with the merger, representing 58.8% of all ARCP shares eligible to vote.

At Cole's stockholder meeting, approximately 94.9% of Cole's shares voted were voted in favor of the merger, representing 65.2% of all Cole shares eligible to vote.

As previously announced, the cash/stock election deadline with respect to the merger consideration to be received by Cole stockholders expired at 5:00 p.m., New York time, on January 22, 2014. Approximately 2% of the aggregate number of eligible Cole shares have elected to receive cash pursuant to the terms of the merger agreement, to be paid out at $13.82 per Cole share. Therefore, the balance of approximately 98% of eligible Cole shares will be converted into 1.0929 ARCP shares at the closing of the merger.

Nicholas S. Schorsch, Chairman & CEO of ARCP, commented, "We are thrilled that stockholders from both companies have voted overwhelmingly to approve the proposals related to the ARCP-Cole merger." Mr. Schorsch continued, "This transaction creates the world's largest net lease REIT benefitting from a best-in-class property portfolio, an experienced management team and a strong, flexible balance sheet. Because of the two companies' shared disciplined investment philosophy and systematic investment evaluation process that looks closely at credit as well as real estate, we are positioned to provide durable income to our stockholders through growth in property rents and asset appreciation. We are also excited to welcome the Cole management team and their employees to the ARCP family."

David S. Kay, President of ARCP, added, "We expect this transformative transaction to further deleverage our balance sheet with a large portfolio of unencumbered assets and add well-structured, low cost, fixed rate financing, allowing us to achieve a better than expected 7x debt-to-EBITDA ratio."

Marc Nemer, Cole's Chief Executive Officer, said, "We believe that this transaction provides the size, scale and operating efficiencies that will create superior growth opportunities and higher returns for our stockholders. ARCP continues to demonstrate its ability to grow its net lease business for the benefit of stockholders, and at the same time position the company as the undisputed leader in the net lease category, and one of the most successful REITs in the industry."

As previously announced, ARCP's annualized dividend will increase by $0.06 from $0.94 to $1.00 per share in connection with the merger. As a result of the merger, ARCP will solidify its sector leadership among net lease REITs with a pro forma combined company portfolio of nearly 3,700 properties leased to over 1,100 tenants occupying over 100 million square feet in 49 states, the District of Columbia and Puerto Rico. More than 49% of annualized rents will be generated from investment grade tenants. ARCP's portfolio will be 99% occupied with an average remaining lease term of 10.5 years. The enterprise value will total more than $21.5 billion, 61% greater than its next largest competitor.

About ARCP

ARCP is a self-managed publicly traded Maryland corporation listed on The NASDAQ Global Select Market, focused on acquiring and owning single tenant freestanding commercial properties subject to net leases with high credit quality tenants. Additional information about ARCP can be found on its website at  ARCP may disseminate important information regarding it and its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.

About Cole

Cole is a market-leading net-lease REIT focused on the acquisition, active management, leasing and financing of its high-quality retail, office and industrial portfolio. Visit to learn more about Cole's comprehensive capabilities, best-in-class management platform, disciplined investment strategy and high-quality real estate portfolio.

Forward-Looking Statements

Information set forth herein (including information included or incorporated by reference herein) contains "forward-looking statements" (as defined in Section 21E of the Securities Exchange Act of 1934, as amended), which reflect ARCP's and Cole's expectations regarding future events. The forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements include, but are not limited to, whether and when the transactions contemplated by the merger agreement will be consummated, the combined company's plans, market and other expectations, objectives, intentions, as well as any expectations or projections with respect to the combined company, including regarding future dividends and market valuations, and estimates of growth, including funds from operations and adjusted funds from operations and other statements that are not historical facts.

1 of 2

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 -2.67%
FB $104.07 -5.81%
GOOG $683.57 -3.45%
TSLA $162.60 -7.26%
YHOO $27.97 -4.05%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs