Lone Star Funds To Acquire Home Properties For $75.23 Per Share - Quick Facts

(RTTNews) - Home Properties, Inc. (HME) announced that it has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds, in a transaction valued at approximately $7.6 billion, including the assumption of existing debt. Lone Star Funds will acquire all of the outstanding common stock of Home Properties for $75.23 per share in an all-cash deal.

Lone Star Funds is a global private equity firm that invests in real estate, equity, credit, and other financial assets. Upon completion of the deal, Home Properties will become a privately held company.

Home Properties also entered into an agreement to contribute a portfolio of up to six properties containing as many as 3,246 units to UDR, Inc. (UDR), in exchange for a combination of cash and newly issued units of a newly formed subsidiary of UDR, UDR DownREIT.

Home Properties said existing holders of partnership units of Home Properties, L.P., or Home Properties OP Units units, will have the opportunity to elect to exchange their Home Properties OP Units for 2.15 newly issued UDR DownREIT Units for each Home Properties OP Unit held, plus $3.01 in cash from Lone Star Funds.

Prior to the Home Properties merger, Lone Star Funds will acquire all of the Home Properties OP Units that are not owned by Home Properties and have not been exchanged pursuant to a merger of Home Properties OP with a wholly owned subsidiary of Lone Star Funds.