American Realty Capital Cuts Value of Offer for Non-listed REIT

American Realty Capital Properties Inc. (ARCP) changed the terms of its bid for American Realty Capital Trust IV, a nonlisted real estate investment trust under the same management company, to value the company at about $3 billion.

American Realty Capital Properties offered $9 in cash, 0.5190 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 today. The bid is valued at $30.43 a share, based on the Oct. 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 nontraded REITs. The transaction is expected to be completed in the fourth quarter, the companies said today.

To contact the editor responsible for this story: Andrew Blackman at adblackman@bloomberg.net

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