NEW YORK (AP) -- THE DEAL: Real estate investment trust Realty Income Corp. is buying American Realty Capital Trust Inc. for approximately $1.9 billion in stock. Realty Income will also assume about $526 million in debt and repay about $574 million of outstanding debt and transaction expenses.
THE OBJECTIVE: Realty Income, which owns and manages single-tenant retail properties, said Thursday that the deal will diversify its holdings, as American Realty focuses on commercial properties.
THE OUTLOOK: Both companies' boards have unanimously approved the deal, which still needs approval from the companies' shareholders. The buyout is expected to close in the fourth quarter or early in the first quarter.
