ARC’s Global Net Lease Concludes $125 Million Tender, Share Price Slides

Global Net Lease Inc. (NYSE: GNL), a publicly traded real estate investment trust externally managed by AR Capital, concluded its tender offer to purchase up to $125 million worth of shares at $10.50 each.

The tender offer was launched in conjunction with the company’s listing on the New York Stock Exchange on June 2nd, as reported by The DI Wire, when the non-traded REIT previously known as American Realty Capital Global Trust Inc. opened trading at $10.07.  Despite the tender offer, shares closed at $9.32 on day one of trading and have generally trended lower over the ensuing weeks, closing at a low of $8.84 yesterday.

Based on the preliminary count by DST Systems Inc., the paying agent and depositary for the tender offer, a total of 127,904,350 shares of the Global Net Lease Inc.’s common stock were validly tendered and not properly withdrawn at the purchase price of $10.50 per share, including 1,266,536 shares that were tendered through notice of guaranteed delivery.

Global Net Lease Inc. will accept the purchase of 11,904,762 shares of common stock, or 6.6 percent of those currently issued and outstanding as of June 29, 2015, at a purchase price of $10.50 per share, for an aggregate cost of approximately $125.0 million, excluding fees and expenses relating to the tender offer.

Based on these preliminary numbers, the company anticipates that following settlement of the tender offer, it will have approximately 168,947,744 shares outstanding.

Due to the oversubscription of the tender offer, Global Net Lease Inc. will accept for purchase on a pro rata basis approximately 8.97 percent of the shares validly tendered and not properly withdrawn by each tendering stockholder (other than “odd lot” holders, whose shares will be purchased on a priority basis). The number of shares to be purchased and the proration information are preliminary and subject to change.