MacKenzie Launches Tender Offer for AR Global’s American Finance Trust Shares
MacKenzie Realty Capital Inc. has launched an unsolicited tender offer for shares of American Finance Trust (NASDAQ: AFIN), a former non-traded real estate investment trust sponsored by AR Global that listed half of its shares on The Nasdaq Global Select Market last week.
MacKenzie Realty Capital Inc. has launched an unsolicited tender offer for shares of American Finance Trust (NASDAQ: AFIN), a former non-traded real estate investment trust sponsored by AR Global that listed half of its shares on the Nasdaq Global Select Market last week. The offer expires on September 10, 2018.
MacKenzie is offering $15.00 per Class A share, $11.27 per Class B-1 share, and $10.00 per Class B-2 share, and will purchase up to 400,000 shares of each class, or approximately 2.3 percent of the outstanding common shares.
Shares of the non-traded REIT originally sold for $25.00 each, and the company terminated its share repurchase program at the end of June prior to listing on Nasdaq.
American Finance Trust’s listed Class A shares represent approximately 50 percent of the company’s outstanding shares of common stock. Class B-1 and Class B-2 shares represent approximately 25 percent each of the outstanding common stock and will automatically convert to Class A shares and list on Nasdaq no later than 90 days and 180 days, respectively, from April 19th. All shares will be fully listed before January 15, 2019.
AFIN stock closed at $14.29 on Thursday.
American Finance Trust is a publicly traded real estate investment trust listed focused on managing and acquiring single and multi-tenant portfolio that is service-retail focused. While structured as a non-traded REIT, the company’s offering raised more than $1.6 billion in investor equity between April and October 2013.
As of March 31, 2018, the company’s portfolio consisted of 558 single-tenant net lease and multi-tenant retail and lifestyle center properties with an average weighted remaining lease term of 8.3 years. According to Summit Investment Research, the properties have a combined investment cost of approximately $3.4 billion.
