Cole REIT II closing

We did not have sex with that Pension Board!
Post Reply
Posts: 9
Joined: Mon May 21, 2012 1:38 pm

Cole REIT II closing

Post by CAPT_DOMM » Tue Feb 12, 2013 7:43 am

Cole REIT is closing via a merger with publicly traded Spirit Realty Capital, Inc. ("Spirit Realty"), a publicly listed real estate investment trust ("REIT"), and a subsequent listing of the combined company's shares on the New York Stock Exchange ("NYSE"). CCPT II's Board of Directors and the Spirit Realty Board of Directors have unanimously agreed to a definitive merger agreement in a transaction that will create the second largest publicly traded triple-net lease REIT in the United States with a pro forma enterprise value of approximately $7.1 billion. Based on Spirit Realty's closing share price on January 18, 2013, the transaction would generate a positive cumulative total return for CCPT II shareholders. The transaction, which is expected to close in the third quarter of 2013, is subject to the approval of the CCPT II and Spirit Realty shareholders and the satisfaction of customary closing conditions.
Under the terms of the merger agreement, Spirit Realty shareholders will receive a fixed exchange ratio of 1.9048 CCPT II shares for each share of Spirit Realty common stock owned (equates to 0.525 Spirit Realty shares for each share of CCPT II). The combined company will immediately list its common shares on the NYSE and will trade under Spirit Realty's existing ticker SRC. Based on Spirit Realty's closing price of $17.82 per share on January 18, 2013, the exchange ratio implies a value of $9.36 per CCPT II share and, depending on when a CCPT II shareholder invested, reflects a positive cumulative total return of 20% to 42%, despite the fund operating through a challenging time in the real estate cycle.

This should be interesting. If Cole completes the transaction and it's shareholders earn what they are projecting it will be a another huge win for non-publicly traded reits. Cole II couldn't have purchased it real estate at a worse time (05-07) and a positive return of that amount will be remarkable.

Posts: 2
Joined: Wed Mar 13, 2013 7:15 am

Re: Cole REIT II closing

Post by WhySoQuiet » Wed Mar 13, 2013 7:19 am

SRC doing well, which will only make this a better deal for CCPT II shareholders assuming it holds up until deal completion. I'll ask again, where is REITWrecks to weigh in on these successes?

Post Reply