American Homes 4 Rent & American Residential Properties To Merge - Quick Facts

(RTTNews) - American Homes 4 Rent (AMH) and American Residential Properties, Inc. (ARPI) announced that the Boards of both companies have approved a definitive agreement to combine the two companies in a tax-free merger at a total transaction value of approximately $1.5 billion. At closing, each share of American Residential Properties common stock and each limited partnership unit in its operating partnership will be exchanged for 1.135 common shares or limited partnership units of American Homes 4 Rent, representing a current value per share/unit of American Residential Properties of $19.01.

The combined company is expected to own more than 47,000 homes in 22 states and to have an equity market capitalization of $5.5 billion. The merger is expected to be accretive to American Homes 4 Rent Core FFO.

In the merger, American Homes 4 Rent will issue approximately 38 million common shares and assume or repay a total of approximately $0.8 billion of American Residential Properties debt. The merger is targeted to close during the first half of 2016.