American Campus (ACC) Nears Finalization of $627M Housing Property Acquisition
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American Campus Communities, Inc. (NYSE: ACC), has substantially completed its due diligence investigation relating to the acquisition of 15 student housing properties with 6,579 beds, including two properties and an additional phase at an existing property currently under development, pursuant to a merger agreement with affiliates of Campus Acquisitions, LLC for $627.0 million. The acquisition consideration consists of the assumption of approximately $231.6 million of outstanding mortgage debt, the issuance of between $15 million and $50 million in the form of units of common limited partnership interest in ACC's operating partnership, and between $345.4 million and $380.4 million in cash, with the final allocation between the unit and cash consideration to be determined by Campus Acquisitions prior to closing.
The transaction is expected to close in the third quarter of 2012 and is subject to certain closing conditions, including obtaining various lender consents. The merger agreement contains provisions pursuant to which Campus Acquisitions can defer the closings of the acquisition of any of the development properties to a date not later than October 15, 2013 if the closing conditions relating to such properties are not satisfied by November 15, 2012. Completion of the transaction is not subject to financing and does not require approval by ACC stockholders. American Campus intends to fund the cash portion of the purchase price with available cash, borrowings under its revolving credit facility, a bridge loan facility and/or the sale of debt or equity securities.
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The transaction is expected to close in the third quarter of 2012 and is subject to certain closing conditions, including obtaining various lender consents. The merger agreement contains provisions pursuant to which Campus Acquisitions can defer the closings of the acquisition of any of the development properties to a date not later than October 15, 2013 if the closing conditions relating to such properties are not satisfied by November 15, 2012. Completion of the transaction is not subject to financing and does not require approval by ACC stockholders. American Campus intends to fund the cash portion of the purchase price with available cash, borrowings under its revolving credit facility, a bridge loan facility and/or the sale of debt or equity securities.
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