0001140361-17-042243.txt : 20171113 0001140361-17-042243.hdr.sgml : 20171110 20171113185652 ACCESSION NUMBER: 0001140361-17-042243 CONFORMED SUBMISSION TYPE: 4 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20171004 FILED AS OF DATE: 20171113 DATE AS OF CHANGE: 20171113 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Edison Jeffrey CENTRAL INDEX KEY: 0001548377 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 000-54691 FILM NUMBER: 171197772 MAIL ADDRESS: STREET 1: 11501 NORTHLAKE DRIVE CITY: CINCINNATI STATE: OH ZIP: 45249 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: PHILLIPS EDISON GROCERY CENTER REIT I, INC. CENTRAL INDEX KEY: 0001476204 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 271106076 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 BUSINESS ADDRESS: STREET 1: 11501 NORTHLAKE DRIVE CITY: CINCINNATI STATE: OH ZIP: 45249 BUSINESS PHONE: 513-554-1110 MAIL ADDRESS: STREET 1: 11501 NORTHLAKE DRIVE CITY: CINCINNATI STATE: OH ZIP: 45249 FORMER COMPANY: FORMER CONFORMED NAME: Phillips Edison Grocery Center REIT I, Inc. DATE OF NAME CHANGE: 20141205 FORMER COMPANY: FORMER CONFORMED NAME: Phillips Edison - ARC Shopping Center REIT Inc. DATE OF NAME CHANGE: 20091105 4 1 doc1.xml FORM 4 X0306 4 2017-10-04 0 0001476204 PHILLIPS EDISON GROCERY CENTER REIT I, INC. N/A 0001548377 Edison Jeffrey 11501 NORTHLAKE DRIVE CINCINNATI OH 45249 1 1 0 0 CEO and Charman of the Board OP Units 2017-10-04 4 P 0 17392769 A Common Stock 17392769 19117346 D OP Units 2017-10-04 4 P 0 2105071 A Common Stock 2105071 2805817 I By PELP Class B units 2017-10-04 4 J 0 2425323 D OP Units 2425323 0 I By PELP OP Units 2017-10-04 4 J 0 1724577 A Common Stock 1724577 0 D OP Units 2017-10-04 4 J 0 700746 A Common Stock 700746 0 I By PELP Phantom units 2017-10-04 4 A 0 521550 0 A OP Units 521550 521550 D On October 4, 2017, pursuant to the closing (the "Closing") of that certain Contribution Agreement (the "Contribution Agreement") by and among the issuer (the "Company"), its operating partnership subsidiary, Phillips Edison Grocery Center Operating Partnership I, L.P., a Delaware limited partnership ("PECO I OP"), the entities named on Exhibit A therein (the "Contributors"), and Jeffrey S. Edison, as the representative of the Contributors, the Contributors contributed to PECO I OP all of the issued and outstanding equity interests of certain of the Contributors' subsidiaries identified on Exhibit B of the Contribution Agreement (collectively the "Contributed Companies"), in exchange for which (i) PECO I OP issued the Contributors approximately 39.4 million common operating partnership units ("OP Units") of PECO I OP, plus cash and the contingent right to receive up to approximately 12.5 million OP Units if certain milestones are achieved as set forth in the Contribution Agreement. Reflects 17,392,769 OP Units distributed by the Contributors to the Reporting Person at the Closing, inclusive of OP Units held by affiliates for whom the Reporting Person is an economic beneficiary. OP Units are exchangeable for cash or, at the option of PECO I OP, shares of the Company's common stock on a one-to-one basis, beginning one year from the date of issuance and have no expiration date. In the Contribution Agreement, each OP Unit was valued at $10.20 per unit. Reflects the Reporting Person's interest in (i) 3,394,685 OP Units held in escrow by an escrow agent as credit support for certain contingent obligations under the Contribution Agreement and OP Units retained by a Contributor. The Reporting Person controls PELP. Prior to the Closing, the Company paid to one of the Contributors as partial consideration for asset management services restricted profits interest units designated as Class B units. At issuance, the Class B units were subject to vesting, and did not have full parity with OP Units with respect to liquidating distributions, but upon the occurrence of certain events described in PECO I OP's partnership agreement, could over time achieve full parity with the OP Units for all purposes. Upon vesting and achieving full parity with OP Units, the Class B unit would convert into an equal number of OP Units. At the Closing, approximately 4.8 million Class B Units held by Phillips Edison Limited Partnership ("PELP") vested and converted into OP Units. Reflects the Reporting Person's interest in the 4.8 million Class B units held by PELP that vested and were converted into OP Units at the Closing. Reflects OP Units which were (i) converted from Class B units and (ii) distributed by the Contributors to the Reporting Person at the Closing. The 1,724,577 acquired OP Units are included in the 19,117,346 OP units referenced in Column 9 of the first line item above. Reflects the Reporting Person's interest in the OP Units which (i) were converted from Class B units and (ii) are being held by PELP until two years from the date the Class B units were issued. The 700,746 acquired OP Units are included in the 2,805,817 OP Units referenced in Column 9 of the second line item above. In accordance with the terms of the Contribution Agreement and effective as of the Closing, the Reporting Person entered into an RMU Cancellation and Exchange Agreement with PELP and PECO I OP, pursuant to which the Reporting Person's restricted management units of PELP (the "RMUs") were cancelled at the Closing in exchange for the right to receive three Phantom Units (as defined below) for each cancelled RMU. A "Phantom Unit" represents the right of each executive to receive from PECO I OP cash equal to the fair market value of one OP Unit upon vesting, as well as, the right to receive in cash, the equivalent of any dividend payable with respect to OP Units, regardless of whether the Phantom Unit is vested. 149,100 Phantom Units will vest on each of January 1, 2018, January 1, 2019 and January 1, 2020. 74,250 Phantom Units will vest on January 1, 2021. All vesting is subject to continued employment. /s/ Jeffrey S. Edison 2017-11-13