ARCP (NASDAQ:ARCP) enters into a definitive merger agreement with ARCT IV

Denver, CO, 07/04/2013 - American Realty Capital Properties, Inc. (NASDAQ:ARCP) announced on July 2 that it has entered into a definitive merger agreement with American Realty Capital Trust IV, Inc. (“ARCT IV”), under which ARCP will acquire all of the outstanding shares of ARCT IV in exchange for cash and stocks, for total proceeds of $3.1 billion.

The agreement has been approved by the independent directors from both the companies under talks, but is subject to customary closing conditions, including stockholder votes by both companies. Shareholders of record as of July 2, 2013 will be entitled to vote on the proposed acquisition.

The acquisition is expected to be completed by the end of the third quarter of 2013.

After the acquisition, ARCP will possess 2,579 single tenant properties net leased to 470 tenants over 29 industries in 48 states and Puerto Rico. This deal will place the company as the second largest net lease REIT.

The projected pro forma enterprise value of ARCP will amount to approximately $10 billion, including an annualized rent of more than $527 million annually, 57% of which comes from investment grade tenants.

Last monthARCT IV announced that a total sum of $1.45 billion will be paid to GE Capital for properties leased mainly to such restaurant chains as Burger King, Wendy’s and KFC. The deal included 986 net lease properties in 47 states.

In June, ARCP announced that it will pay $807 million for 471 properties from GE Capital, leased mostly to operators of such restaurants as Burger King, Wendy’s and IHOP.

ARCP has raised its2014 adjusted funds from operations forecast; now ranging between $1.19 and $1.25 per share, compared to its previous guidance of 93 cents per share.

The stock closed on Wednesday at $14.50, down 2.19%, trading midway between its 52-week range. The volume of the stock was close to 1.67 million shares, compared to an average volume of 5.19 million.