Realty Income Sweetens Pot for ARCT Shareholders

NEW YORK CITY-American Realty Capital Trust Inc. and Realty Income Corp. said Monday they’ve signed an amendment to their $2.95-billion merger agreement, with the Encino, CA-based Realty Income adding a one-time cash payment of 35 cents per share to the stock swap that’s already part of the deal. The announcement, which Realty Income describes as its best and final offer to ARCT stockholders, comes a few days after ARCT management reaffirmed their support of the merger, first announced this past September.

In a statement, Nicholas Schorsch, ARCT chairman, says his company’s board is “confident that this increased offer from Realty Income not only achieves the highest attainable value for our stockholders, but also allows them to participate in the potential upside of the combined company. The $0.35 per share cash payment will provide ARCT stockholders with an immediate increase in transaction value of approximately $55.5 million, and the Realty Income dividend increase will enhance the income stream for ARCT stockholders as the combined company continues to grow.”