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American Realty Capital Trust Reminds Stockholders to Vote "FOR" the Realty Income Merger at the January 16, 2013 Special Meeting
Deadline for Voting by Internet or Telephone is Tuesday, January 15 at 11:59 p.m. ET
By: PR Newswire
Jan. 14, 2013 06:00 AM
NEW YORK, Jan. 14, 2013 /PRNewswire/ -- American Realty Capital Trust, Inc., (NASDAQ: ARCT) ("ARCT" or the "Company") today reiterated its recommendation that all ARCT stockholders vote "FOR" the proposal to approve the merger with Realty Income Corporation (NYSE: O) ("Realty Income") and the other transactions contemplated by the merger agreement at the Company's Special Meeting of Stockholders scheduled for Wednesday, January 16, 2013. Stockholders can vote by:
If a stockholder has previously voted against the transaction, they can still change their vote. A later-dated vote cast via the Internet, by telephone or a later-dated signed proxy card voting FOR the merger will cancel any previous vote. ARCT recommends that stockholders use the Internet and telephone voting options as time is short to the meeting date.
"We are encouraged by the support we have received from our stockholders in favor of the transaction, and look forward to completing the merger shortly," said William M. Kahane, Chief Executive Officer and President of ARCT. "We strongly believe that the merger with Realty Income achieves the highest attainable value for our stockholders and also allows them to participate in the potential upside of the combined company."
As previously announced on January 9, 2013, Institutional Shareholder Services ("ISS") recommends that ARCT stockholders vote FOR its proposed merger with Realty Income. In making its recommendation, ISS highlighted that:
"As the significant increase in expected dividends per O share, which fundamental analysis suggests should bolster O share prices, will likely have the effect of strengthening the merger's primary currency, moreover, ARCT shareholders can reasonably expect that the full market value of the consideration they receive will continue to improve as the market recognizes this increase in the value provided by O shares."*
As previously announced on January 7, 2013, ARCT and Realty Income signed an amendment to the previously announced definitive merger agreement (the "Merger Agreement") under which Realty Income will now pay ARCT stockholders a one-time cash payment of $0.35 per share in addition to the existing fixed exchange ratio of 0.2874 Realty Income shares for each share of ARCT common stock that they own. The additional cash consideration of $0.35 per share totals approximately $55.5 million in additional proceeds for the ARCT stockholders, of which approximately $52.5 million is being funded by Realty Income and $3.0 million by AR Capital LLC. The transaction is expected to close in January 2013, following a vote by the stockholders of both companies.
Realty Income also announced its intention, upon closing of the merger, to increase its annualized dividend to Realty Income stockholders by $0.35 per share to an annualized rate of $2.17 per share beginning with the February 2013 distribution. This represents a $0.22 per share increase to the original dividend increase of $0.13 per share that Realty Income estimated when the transaction was initially announced.
All other terms and conditions remain the same as those set out in the Merger Agreement as described in detail in the definitive proxy mailed to Realty Income and ARCT stockholders on December 6, 2012 and available on www.sec.gov. Stockholders are encouraged to read the definitive proxy statement in its entirety, as it provides, among other things, a detailed discussion of the process that led to the proposed merger and the reasons behind the board of directors' recommendation that stockholders vote "FOR" the proposed merger with Realty Income.
A Special Meeting of ARCT stockholders to consider and vote on the proposal to approve the merger and the other transactions contemplated by the merger agreement has been scheduled for January 16, 2013 at 9:00 AM ET, at The Core Club located at 66 East 55th Street, New York, New York, 10022. Stockholders of record of the Company as of December 6, 2012, will be entitled to vote at the Special Meeting.
Whether or not stockholders are able to attend the Special Meeting in person, the board urges all stockholders to vote "FOR" the proposed merger with Realty Income. Internet and telephone voting options are available and easy to follow instructions may be found in the proxy. Even if stockholders have already voted against the transaction, they can still change their vote. Signing a proxy card today cancels any card previously signed and returned. Only the latest dated proxy, Internet or telephone vote counts. Stockholders who have any questions or need assistance voting their shares should call the Company's proxy solicitor, D.F. King & Co., Inc., toll free at 1‐800‐714‐3305.
* Permission to use quotation was neither sought nor obtained.
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The following additional factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability of the Company and Realty Income to obtain the stockholder approvals required to consummate the proposed merger; unexpected costs or unexpected liabilities that may arise from the transaction, whether or not consummated; the inability to retain key personnel; continuation or deterioration of current market conditions; future regulatory or legislative actions that could adversely affect the companies; and the business plans of the customers of the respective parties. Additional factors that may affect future results are contained in the Company's and Realty Income's filings with the SEC, which are available at the SEC's website at www.sec.gov. The Company and Realty Income disclaim any obligation to update and revise statements contained in these materials based on new information or otherwise.
SOURCE American Realty Capital Trust, Inc.
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