Bank of America Enters Into Agreement to Sell Remaining Interest in Archstone for $1.58B
Bank of America announced today that it and Barclays Bank PLC have entered into an agreement with Equity Residential and Lehman Brothers Holdings Inc. pursuant to which Bank of America and Barclays will sell their remaining 26.5 percent interest in Archstone, a privately-held owner, operator and developer of multifamily apartment properties, for a purchase price of $1.58 billion to Lehman pursuant to Lehman's exercise of its right of first offer. Bank of America and Barclays will pay an $80 million break-up fee to Equity Residential if the sale to Lehman closes. Upon consummation of this transaction, which is anticipated to occur in the second quarter of 2012, Bank of America and Barclays will have sold a 53.0 percent controlling interest in Archstone in two steps for a total purchase price of $2.905 billion. Archstone has net debt and third-party preferred securities of approximately $10.5 billion.
Pursuant to the agreement, the parties have released each other from all claims relating to Archstone.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.