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Riverside Communities
Partners with Farallon to Acquire Affordable Residential
Communities, Inc.
CHICAGO, IL -- Riverside Communities announced today that it has
partnered with Farallon Capital Management to acquire Affordable
Residential Communities Inc. (NYSE: ARC). The companies have
entered into a definitive transaction agreement providing for the
purchase of ARC's manufactured home community business.
The gross proceeds to ARC will be $1.794 billion consisting of cash
and assumed debt, subject to adjustment. ARC will retain approximately $125.0 million par value of Series A Preferred
Stock, $96.6 million of Senior Exchangeable Notes Due 2025 and $25.8
million of Trust Preferred Securities Due 2035. ARC will also retain its
ownership of the recently acquired NLASCO insurance operations, and
it will seek to make opportunistic acquisitions with the proceeds
from the transaction. The transaction is expected to be completed by
the end of 2007, subject to receipt of stockholder approval as well
as the satisfaction of other customary closing conditions. Farallon
and Riverside
Communities have agreed to offer positions to all of ARC's employees currently
engaged in the manufactured home community business on substantially
the same terms as at present.
About Affordable Residential Communities, Inc.
Affordable Residential Communities Inc. ("ARC"), excluding discontinued operations, currently owns
and operates approximately 57,264 homesites located in 275
communities in 23 states. ARC is focused on the acquisition,
renovation, repositioning and operation of primarily all-age
manufactured home communities with headquarters in Englewood, CO.
About Farallon Capital Management, L.L.C.
Farallon Capital Management, L.L.C. ("Farallon") is a global, San Francisco-based
investment management company that manages discretionary equity
capital of more than $26 billion, largely from institutional
investors such as university endowments, foundations, and pension
plans. Farallon was founded in March 1986 by Thomas F. Steyer.
Farallon invests in public and private debt and equity securities,
direct investments in private companies and real estate. Farallon
invests in real estate across all asset classes around the world,
including the United States, Europe, Latin America and India. More
information about Farallon may be found at www.faralloncapital.com.
About Riverside Communities
Riverside Communities is a Chicago-based asset management
company which owns and operates high-quality manufactured home communities.
Led by David Helfand, former President and Chief Executive Officer of Equity Lifestyle
Properties (NYSE:ELS), the Riverside management team has more than
40 years of experience in the MHC industry, having acquired more
than 75 communities. Recognizing the great strides that have been
made by ARC to date, Riverside Communities plans to work collaboratively with
current management and employees to continue the turnaround of the
company’s irreplaceable collection of assets.
Contact:
Riverside Communities
Orrin Shifrin, (312) 242-1500, General Counsel
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