CNL Lifestyle on Verge of Final Liquidation
CNL Lifestyle Properties Inc, a publicly registered non-traded real estate investment trust, received stockholder approval at a special meeting of stockholders to sell its remaining assets to EPR Properties (NYSE: EPR) and Ski Resort Holdings and dissolve the company, according to a filing with the Securities and Exchange Commission.
As previously reported by The DI Wire, the REIT signed an agreement with EPR and Ski Resort Holdings to sell its remaining assets for approximately $830 million, which was estimated to be paid in $182.6 million of cash and $647.4 million of common shares of beneficial interest of EPR.
Pursuant to a plan of liquidation that was also approved at the special meeting, there will be a special distribution of the net proceeds of the sale to the stockholders of approximately $153.2 million and 8.85 million common shares of beneficial interest of EPR.
Based on the closing price of EPR common shares of $74.28 on the April 6th closing date, the value of the share consideration is approximately $657.5 million, or approximately $2.02 per each share of company common stock. CNL Lifestyle noted that the value of the share consideration may change between the closing date and the date of the interim distribution.
The record date for stockholders entitled to receive the share consideration is March 31, 2017, and the company expects that the board will authorize the interim distribution on April 20th. The share consideration will be distributed based on a ratio of approximately 2.7219 shares of EPR common stock for 100 shares of CNL Lifestyle common stock. Shares of EPR closed at $74.35 on Friday.
CNL Lifestyle Properties, which focuses on lifestyle-related industries, went effective in April 2004 and raised $2.9 billion in investor equity in multiple offerings before closing in April 2011.
