Notable Mergers and Acquisitions of the Day 12/27: NGAS/MHR, DY, ROIC
- Ngas Resources (Nasdaq: NGAS) reports definitive agreement to be acquired by Magnum Hunter (Amex: MHR) for an estimated value of $98 million.
According to the terms of the deal, each common share of the Company will be transferred to Magnum Hunter for the right to receive 0.0846 of a share of Magnum Hunter common stock. The exchange ratio for the transaction, which will not be adjusted for subsequent changes in market prices, was established based on an intra-day price of $6.50 for Magnum Hunter stock, representing a value to NGAS shareholders of $0.55 per share, a 41% premium to the NGAS closing price on December 23, 2010.
- Dycom Industries, Inc. (NYSE: DY) had acquired NeoCom Solutions, Inc. for a cash purchase price of approximately $27.5 million. The acquisition was paid from cash on hand.
NeoCom, based in Woodstock, Georgia, is a provider of services to construct, install, optimize and maintain wireless communication facilities in the southeastern United States.
- Retail Opportunity Investments Corp. (Nasdaq: ROIC) announced that they have completed the acquisition of Gateway Village, Halsey Crossing and Division Crossing for $52 million. They have also completed the acquisition of a $58 million portfolio.
From the release:
"Gateway Village
On December 16, 2010, the Company completed the acquisition of Gateway Village, a 91.0% occupied grocery anchored neighborhood shopping center located in Chino Hills, California for an aggregate purchase price of $34.0 million. The Company assumed the Sellers' obligations under three existing loans totaling approximately $21.8 million carrying a blended 5.8% interest rate and maturing between 2014 and 2016. The 96,959 square foot shopping center is anchored by Henry's Marketplace (Smart & Final).
Division Crossing and Halsey Crossing
On December 22, 2010 the Company closed on the acquisition of two grocery anchored neighborhood shopping centers in Oregon for an aggregate purchase price of $18.0 million. The assets, Division Crossing ("Division") and Halsey Crossing ("Halsey") further enhance the Company's footprint in Oregon and the greater Pacific Northwest. The Company continues to be one of the most active acquirers of assets in the region and with the acquisitions has increased its Pacific Northwest portfolio to nine assets.
Division is a grocery-anchored neighborhood shopping center of approximately 98,321 square feet and was acquired for $11.0 million. It is anchored by Safeway and currently 98.5% leased. The property is located in an area with approximately 305,215 people within a five mile radius, with an average household income of approximately $58,403.
Halsey is a grocery-anchored neighborhood shopping center of approximately 99,438 square feet and was acquired for $7.0 million. It is anchored by Safeway and is currently 89.6% leased and subject to a ground lease that expires on June 1, 2069. Halsey is located in an area with approximately 275,215 people within a five mile radius, with an average household income of approximately $62,078.
California Loan Portfolio
On December 16, 2010, the Company acquired four loans for an aggregate purchase price of $50.0 million, which represents approximately a 14% discount to the aggregate outstanding principal amount owed under the Loans. The Loans are currently in default and provide for a default interest rate of 5.0% over the regular interest rate of LIBOR +350 basis points to +450 basis points. The Loans are cross-collateralized and are secured by: (i) Desert Springs Marketplace, a shopping center located in Palm Desert, CA (ii) Mills Shopping Center, a shopping center located in Rancho Cordova, CA, and (iii) Nimbus Winery Shopping Center, a shopping center located in Rancho Cordova, CA. The line of credit facility is secured by a second mortgage on an office building in Kirkland, WA. Notices of Default have been filed for all the Loans. [More information on the Loans can be found in the company's 8K filing.]
Desert Springs Marketplace is a grocery-anchored neighborhood shopping center of approximately 105,157 square feet that is anchored by Ralphs "Fresh Fare" Grocer (Kroger Co.) and Rite Aid Pharmacy. It is currently 99.1% leased and located in an area with approximately 100,315 people within a five mile radius, with an average household income of approximately $86,886.
Mills Shopping Center is a grocery-anchored neighborhood shopping center of approximately 252,912 square feet that is anchored by Raley's supermarket, Sears and Dollar Tree. It is currently 77.9% leased and located in an area with approximately 223,563 people within a five mile radius, with an average household income of approximately $71,156.
Nimbus Winery Shopping Center is a grocery-anchored neighborhood shopping center of approximately 74,998 square feet. It is currently 79.4% leased and located in an area with approximately 155,250 people within a five mile radius, with an average household income of approximately $87,291."
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