NEW YORK (AP) — American Realty Capital Properties Inc. is buying fellow real estate investment trust CapLease in a deal the companies valued at about $2.2 billion.
New York-based American Realty will pay $8.50 for each share of CapLease's outstanding common stock. The price represents a 20 percent premium over the company's Friday closing stock price.
Shares of New York-based CapLease Inc. jumped 21 percent to $8.54 in morning trading.
In addition, each share of CapLease's preferred stock will be converted into the right to receive $25 in cash plus the equivalent of dividends. American Realty also will assume about $580 million of CapLease's $1.2 billion in debt and repay the rest.
American Realty says the acquisition, which is expected to close in the third quarter, will expand and further diversify its property portfolio.