CapLease 'go shop' period expires without bid

'Go shop' period in American Realty's $2.2B deal for CapLease expires without competing bid

Associated Press

NEW YORK (AP) -- CapLease Inc. said Monday that the "go shop" period called for under its $2.2 billion deal to sell itself to fellow real estate investment trust American Realty Capital Properties Inc. expired without the receipt of any competing offers.

The expiration put the deal a step closer to closing.

Under the terms of the agreement, New York-based American Realty will pay $8.50 for each share of CapLease's outstanding common stock. 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.

CapLease had 40 days to seek out alternative bids for the company. It said Monday that it contacted 44 potential buyers, but none of them submitted a proposal.

The companies said they expect the deal, which remains subject to shareholder approval, to close in the third quarter of 2013.

American Realty shares closed at $14.26 on Friday, while CapLease shares ended the week at $8.50.

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