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ARC Global Trust II and Global Net Lease Propose Merger Terms of 2.27 Shares of GNL Per Share of ARC Global Trust II

August 9, 2016

 

 


ARC Global Trust II and Global Net Lease Propose Merger Terms of 2.27 Shares of GNL Per Share of ARC Global Trust II

August 9, 2016 | by Beth Glavosek | Blue Vault

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In a move intended to grow share value more accretively, improve diversification, and enhance portfolio metrics, American Realty Capital (ARC) Global Trust II has announced its intention to merge with Global Net Lease. According to a recent investor presentation, the deal would purportedly offer the benefits of increased scale and cost savings.

The merger agreement stipulates that each outstanding share of common stock, including restricted shares of common stock, of ARC Global Trust II will be converted into the right to receive 2.27 shares of common stock of GNL, plus a per-share dividend of $1.61 in cash upon completion of the transaction.

Blue Vault notes that if both GNL and ARC Global Trust II shareholders approve the deal, it will qualify as a full-cycle liquidity event for ARC Global Realty Trust II, shares of which originally sold for $25 per share.

As of close of business on August 5, GNL shares closed trading at $8.63. Based on the calculation provided in ARC Global Trust II’s filing, this would equate to a $21.20 value per share for stockholders at the close of the transaction. If approved, the transaction will close in the fourth quarter of 2016. The actual value of the merger to ARC Global REIT II shareholders would depend upon the price of GNL shares at that time.

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John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.