UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.02 | Termination of a Material Definitive Agreement. |
The information disclosed in the second, third and fourth paragraphs of Item 8.01 is hereby incorporated by reference.
Item 7.01 | Regulation FD Disclosure. |
On July 27, 2022, W. P. Carey Inc. (“W. P. Carey”) issued a press release announcing the results of the CPA:18 Stockholder Meeting (as defined in the Merger Agreement (as hereinafter defined)). On August 1, 2022, W. P. Carey issued a press release announcing that the previously announced merger (the “Merger”) of Corporate Property Associates 18 – Global Incorporated (“CPA:18”) with and into of CPA18 Merger Sub LLC, an indirect subsidiary of W. P. Carey (“Merger Sub”), had closed, with Merger Sub surviving the Merger and as an indirect wholly-owned subsidiary of W. P. Carey. The foregoing description is qualified in its entirety by reference to the press releases, which are attached hereto as Exhibit 99.1 and Exhibit 99.2 and incorporated by reference herein.
The information furnished pursuant to this “Item 7.01 Regulation FD Disclosure,” including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into W. P. Carey’s filings under the Securities Act of 1933, as amended.
Item 8.01 | Other Events. |
As previously disclosed in the current report on Form 8-K filed by W. P. Carey with the U.S. Securities and Exchange Commission on February 28, 2022 (the “Prior Report”), W. P. Carey entered into an agreement and plan of merger on February 27, 2022 (the “Merger Agreement”), with CPA:18, Merger Sub, and, for the limited purposes set forth therein, Carey Asset Management Corp. (“CAM”), W. P. Carey & Co. B.V. (“W. P. Carey BV”) and WPC-CPA:18 Holdings, LLC (the “Special General Partner”), each an indirect subsidiary of W. P. Carey, and CPA: 18 Limited Partnership (“CPA18 LP”), pursuant to which, among other things, each share of CPA18 Common Stock (as defined in the Merger Agreement) issued and outstanding immediately prior to the Effective Time (as defined in the Merger Agreement) was, upon the closing of the Merger (the “Closing”), converted into the right to receive (i) 0.0978 of a validly issued, fully paid and non-assessable share of W. P. Carey Common Stock (as defined in the Merger Agreement); and (ii) $3.00 in cash (the “Cash Component”) (including the cash, if any, paid in respect of fractional shares), in each case, without interest. While the Cash Component was subject to certain potential adjustments pursuant to the terms of the Merger Agreement, none were triggered prior to the Closing. The Merger was completed on August 1, 2022. Upon the Closing, W. P. Carey (i) expects to issue approximately 13.8 million shares of W. P. Carey Common Stock and (ii) paid approximately $423.4 million, in cash, to CPA:18 stockholders. In accordance with the terms of the Merger Agreement, neither W. P. Carey nor any of its subsidiaries received any merger consideration for shares of CPA18 Common Stock owned by them.
Pursuant to the terms of the Merger Agreement, at the Closing, (i) the amended and restated advisory agreement dated as of January 1, 2015, by and among CPA:18, CPA18 LP and CAM (as amended by that certain first amendment to amended and restated advisory agreement dated as of January 30, 2018, and that certain second amendment to amended and restated advisory agreement dated as of May 11, 2020, the “Advisory Agreement”), and (ii) the amended and restated asset management agreement dated as of May 13, 2015, among CPA:18, CPA18 LP and W. P. Carey BV (as amended, the “Asset Management Agreement” and together with the Advisory Agreement, the “CPA18 Advisory Agreements”), automatically terminated without any action by any of the parties thereto. W. P. Carey earned fees and was entitled to reimbursement for certain fund management expenses under the terms of the CPA18 Advisory Agreements.
As previously disclosed, the Special General Partner is a party to that certain amended and restated limited partnership agreement of CPA18 LP dated as of January 1, 2015 (the “CPA18 LP Agreement”), by and between CPA18 LP, CPA:18 (as the general and limited partner), and Special General Partner (as the special general partner), pursuant to which, among other things, the Special General Partner was entitled to receive from CPA18 LP (i) certain distributions in respect of the special general partner interest (the amounts in this clause (i), the “Special GP Amount”); and (ii) distributions of capital proceeds upon a change of control event, and related allocation of profits and losses (together with the Special GP Amount, the “Advisor Closing Amounts”). Pursuant to the Merger Agreement, the Special General Partner waived its right to receive the Advisor Closing Amounts upon the consummation of the Merger.
Following the termination of the CPA18 Advisory Agreements, from and after the Closing, W. P. Carey will no longer receive fees, reimbursements or distributions of “available cash” from CPA:18.
The description of the effects of the Merger Agreement and the transactions contemplated by the Merger Agreement does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Merger Agreement, which was filed as Exhibit 2.1 to the Prior Report.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit
No. |
Description | |
99.1 | Press Release issued on July 27, 2022. | |
99.2 | Press Release issued on August 1, 2022. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
W. P. Carey Inc. | ||
Date: August 1, 2022 | By: | /s/ ToniAnn Sanzone |
ToniAnn Sanzone Chief Financial Officer |
Exhibit 99.1
W. P. Carey Inc. Announces Approval of Merger by CPA®:18 Stockholders
New York, NY – July 27, 2022 – W. P. Carey Inc. (NYSE: WPC), a net lease REIT, announced today that its proposed merger with Corporate Property Associates 18 – Global Incorporated (“CPA:18”), was approved by the stockholders of CPA:18. Approval of the transaction was not required by W. P. Carey stockholders. The transaction is expected to close on August 1, 2022.
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $22 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,336 net lease properties covering approximately 157 million square feet as of March 31, 2022. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
www.wpcarey.com
Certain of the matters discussed in this press release constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the anticipated timing of the closing of the merger. These statements are based on the current expectations of our management and are subject to change. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of W. P. Carey. Discussions of some of these other important factors and assumptions are contained in W. P. Carey’s filings with the Securities and Exchange Commission (the “SEC”) and are available at the SEC’s website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey’s Annual Report on Form 10-K for the year ended December 31, 2021 and in Part II, Item 1A. Risk Factors in W. P. Carey’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
Exhibit 99.2
W. P. Carey Inc. Completes $2.7 Billion Merger with CPA®:18
Adds Approximately $2 Billion of Real Estate After Dispositions
New York, NY – Aug. 1, 2022 – W. P. Carey Inc. (W. P. Carey, NYSE: WPC), a net lease REIT, today announced the completion of its merger with Corporate Property Associates 18 – Global Incorporated ("CPA:18").
W. P. Carey believes the primary benefits of the merger include:
· | Immediately accretive to Real Estate AFFO per share, offsetting pre-merger income earned from managing CPA:18 |
· | Concludes the company's exit from the non-traded REIT business, incrementally simplifying the company and enhancing its earnings quality |
· | Adds a well-diversified and high-quality net lease portfolio that enhances certain portfolio metrics |
· | Adds an attractive portfolio of 65 self-storage operating properties |
· | No material integration risk |
· | Enhances operating efficiency |
· | Maintains a strong and flexible investment-grade balance sheet |
In connection with the merger:
· | CPA:18 stockholders received 0.0978 shares of W. P. Carey common stock plus $3.00 of cash for each share of CPA:18 in a transaction initially estimated to be valued at approximately $2.7 billion and expected to add approximately $2 billion of real estate assets, after proposed asset sales, the substantial majority of which have been completed; and |
· | W. P. Carey expects to issue 13.8 million shares of its common stock, increasing its equity market capitalization to approximately $18 billion. |
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $25 billion and a diversified portfolio of operationally critical commercial real estate that on a combined company basis with CPA:18 includes 1,390 net lease properties covering approximately 170 million square feet and a portfolio of 84 self-storage operating properties, as of June 30, 2022 (after certain planned dispositions of CPA:18 properties). For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
www.wpcarey.com
Certain of the matters discussed in this press release constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the anticipated benefits of the merger. These statements are based on the current expectations of our management and are subject to change. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements.
Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of W. P. Carey. Discussions of some of these other important factors and assumptions are contained in W. P. Carey’s filings with the Securities and Exchange Commission (the “SEC”) and are available at the SEC’s website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey’s Annual Report on Form 10-K for the year ended December 31, 2021 and in Part II, Item 1A. Risk Factors in W. P. Carey’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com
Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com
Cover |
Aug. 01, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 01, 2022 |
Entity File Number | 001-13779 |
Entity Registrant Name | W. P. Carey Inc. |
Entity Central Index Key | 0001025378 |
Entity Tax Identification Number | 45-4549771 |
Entity Incorporation, State or Country Code | MD |
Entity Address, Address Line One | One Manhattan West |
Entity Address, Address Line Two | 395 9th Avenue |
Entity Address, Address Line Three | 58th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10001 |
City Area Code | 212 |
Local Phone Number | 492-1100 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 Par Value |
Trading Symbol | WPC |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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