Change in terms of bid values company at $3bn
AMERICAN Realty Capital Properties changed the terms of its bid for American Realty Capital Trust IV, a non-listed real estate investment trust under the same management company, to value the company at about $3bn.
American Realty Capital Properties offered $9 in cash, 0.519 of its shares and 0.5937 of its perpetual preferred securities, for each share of the other REIT, the New York-based companies said in a statement.
The bid is valued at $30.43 a share, based on the October 4 closing price, they said.
On July 2, American Realty Capital Properties said it agreed to buy American Realty Capital Trust IV for 2.05 of its shares or $30 in cash for each share in the other REIT.
That deal was worth about $31 per share.
"This amendment was precipitated by recent challenging conditions in the capital markets that had a material effect on the economic terms" of the original agreement, the companies said.
Both REITs are managed by American Realty Capital, a sponsor of non-traded REITs. The transaction is expected to be completed in the fourth quarter, the companies said.