04 Aug 2020
https://www.radiusplus.com/keyword/jernigan-capital,-Inc. (NYSE: JCAP) announced that it has entered into a definitive https://www.radiusplus.com/keyword/merger-agreement with an affiliate of https://www.radiusplus.com/keyword/nexpoint-advisors, L.P. under which it will be acquired by NexPoint in an all-cash transaction valued at approximately https://www.radiusplus.com/keyword/$900-million, including debt and preferred stock to be assumed or refinanced. The agreement has been unanimously approved by the Company’s Board of Directors. The transaction was recommended to the Company’s Board of Directors by a Transaction Committee consisting of all directors (other than https://www.radiusplus.com/keyword/jim-dondero, founder and President of NexPoint) established to evaluate the transaction.
Under the terms of the Merger Agreement, holders of JCAP's https://www.radiusplus.com/keyword/common-stock and holders of units of operating company interests in Jernigan Capital Operating Company, LLC will receive $17.30 per share/unit in cash. This represents a 30% premium over the 90-day volume-weighted average share price ending July 31, 2020 and a 23% premium over the July 31, 2020 closing share price. Holders of the Company’s Series B https://www.radiusplus.com/keyword/preferred-stock will receive cash equal to $25.00 per share plus all accrued dividends (whether or not authorized or declared) up to, but excluding, the date the merger is consummated.
"Since our initial https://www.radiusplus.com/keyword/public-offering in March of 2015, we have built from the ground up a best in class portfolio of newly constructed Generation V https://www.radiusplus.com/keyword/self-storage facilities in some of the best submarkets in the United States, along with a development platform that is the first of its kind in our sector," said John Good, JCAP’s Chief Executive Officer and Chairman. "We believe this transaction with NexPoint validates the quality of the portfolio of https://www.radiusplus.com/keyword/self-storage properties and the corporate platform we have built and accomplishes the goal of maximizing value for our stockholders during a very difficult time for all of us. We are certain today's announcement is in the best interests of all of JCAP’s stakeholders."
"NexPoint has long admired and supported Jernigan Capital’s unique https://www.radiusplus.com/keyword/self-storage https://www.radiusplus.com/keyword/business-model and platform,” added https://www.radiusplus.com/keyword/jim-dondero, NexPoint’s founder and President. “We plan to build on this vision as a private company, maintaining unparalleled asset quality and continuing the current growth trajectory. With our combined expertise, scale and financial strength, we are well positioned to execute this vision and further expand the Company’s national footprint.”
