NEW YORK CITY—American Realty Capital PropertiesInc. and RCS Capital Corp. said Thursdaythey have settled their dispute over RCS' cancellation of itspurchase of Cole Capital. ARCP is receiving $60million from RCAP in order to terminate the Sept. 30 purchaseagreement for RCAP to acquire Cole Capital PartnersLLC and Cole Capital Advisors Inc. fromARCP for at least $700 million in cash, stock and assumeddebt.
The settlement resolves a lawsuit filed by ARCP in the Delaware Court ofChancery after RCAP canceled the Cole Capital deal early lastmonth; ARCP is dismissing that lawsuit with prejudice. As part ofthe settlement, ARCP and RCAP have also agreed to terminate anyagreements, arrangements or understandings related to the ColeCapital sale, which RCAP canceled after ARCP reported accountingirregularities in quarterly financial results.
The independent members of ARCP's board have retainedMorgan Stanley and Citigroup GlobalMarkets to evaluate possible long-term alternatives forCole Capital. The two financial services firms also assisted innegotiating the settlement between ARCP and RCAP.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
