(For more retail coverage, click GlobeSt.com/RETAIL.)

ORLANDO-The stockholders of locally based restaurant REIT Trustreet Properties Inc. have approved an agreement to be acquired by Scottsdale, AZ-based GE Capital Solutions, Franchise Finance. The deal is valued at approximately $3 billion, as GlobeSt.com first reported in October.

At a special meeting of stockholders, 97.23% of the shares of Trustreet common stock present and voting at the meeting voted in favor of the merger, representing 62.98% of the total number of shares of common stock that were entitled to vote at the meeting. Trustreet expects the merger to be completed on Feb. 26.

Trustreet provides triple-net lease financing to operators of national and regional restaurant chains. The company’s core net-lease portfolio has more than 2,000 properties including restaurant brands such as Applebee’s, Burger King, Jack in the Box, Pizza Hut and Wendy’s.

“Trustreet Properties increases the presence of GE Capital Solutions Franchise Finance on the East Coast, provides a broader suite of finance products and sales capabilities, and adds strong and long-term relationships in the restaurant segment,” said Richard Laxer, president and CEO, GE Capital Solutions, at the time of the merger announcement in October. “It’s a significant growth opportunity for us, and an opportunity to bring our world-class service and products to not only our new customers, but to the segment in general.”

The transaction involves the payment of $17.05 per outstanding share of Trustreet’s common stock and the assumption or refinancing of the company’s outstanding debt. GE Capital Solutions, a lender for the US and Canadian franchise markets, will add Trustreet’s restaurant 1031 trading platform to its own franchise finance business and will establish an East Coast office at the company’s Orlando headquarters.

In the transaction, holders of Trustreet’s $1.93 Series A Convertible Redeemable Preferred Stock will receive $25 per share, plus any accrued but unpaid dividends through the closing date. In addition, GE has agreed that, as soon as possible after the merger, it will liquidate the surviving corporation into a subsidiary of GE Capital Solutions. In the liquidation, each holder of a share of Trustreet’s 7.5% Series C Convertible Redeemable Preferred Stock will receive one share of 7.5% Series C Redeemable Convertible Preferred Stock of TSY-FF Acquisition Co. Inc., a wholly owned subsidiary of GE Capital Solutions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.