Excel Trust To Be Acquired By Blackstone In $2 Bln Deal

(RTTNews) - Real estate investment trust Excel Trust Inc. (EXL) said Friday it has agreed to be acquired by Blackstone Property Partners L.P., a unit of private equity firm Blackstone Group L.P. (BX), in an all-cash transaction valued at about $2 billion. Shares of Excel Trust are gaining more than 15 percent following the announcement.

Under the terms of the definitive agreement, Blackstone will acquire all of the outstanding shares of Excel Trust common stock for $15.85 per share. The transaction, unanimously approved by Excel Trust's board of directors, represents a nearly 15 percent premium over the company's closing stock price of $13.84 on April 9, 2015.

In addition to the common stock dividend of $0.18 per share payable on April 15, 2015, Excel Trust plans to pay an additional common stock dividend in July 2015. However, the San Diego, California-based company noted that the dividend payment will be under the terms of the agreement and not for any quarter thereafter.

Blackstone will make the investment in Excel Trust through Blackstone Property Partners or BPP, its core+ real estate investment unit.

BPP targets substantially stabilized office, retail, industrial, and multifamily assets located in primary U.S. markets. Blackstone's real estate business has $81 billion of assets under management.

The transaction is currently expected to be completed in the second half of 2015 and it is not contingent on receipt of financing by Blackstone.

In connection with the closing of the transaction, the companies intend that Excel Trust's $75 million of 4.40 percent senior series A Notes due 2020 and its $25 million of 5.19 percent Senior Series B Notes due 2023 will be repaid.

Meanwhile, Excel Trust's $250 million of 4.625 percent senior notes due 2024 are intended to remain outstanding following the closing.

For Excel Trust, Morgan Stanley & Co. LLC acted as financial advisor and Latham & Watkins LLP is acting as legal advisor.

For Blackstone, Eastdil Secured / Wells Fargo Securities, LLC is acting as lead financial advisor, with Barclays also acting as a financial advisor in connection with the transaction. Simpson Thacher & Bartlett LLP is acting as legal advisor.

Excel Trust said it will release financial results for its first quarter 2015 on April 29, 2015 after market close.

In light of today's announcement, the company will not hold a conference call for analysts and investors to discuss financial results and canceled the previously announced conference call for April 30, 2015.

Earlier today, Blackstone and Wells Fargo & Co. (WFC) said they have signed agreements to purchase most of the assets of conglomerate General Electric Co.'s (GE) GE Capital Real Estate in a transaction valued at about $23 billion.

EXL closed Thursday's trading at $13.84. In Friday's pre-market activity, the stock is up $2.11 or 15.25 percent to $15.95.

BX closed Thursday's trading at $39.20. In pre-market trades, the stock is up $0.90 or 2.30 percent to $40.10.