Archstone-Smith buyout financing to include credit facility led by Lehman and Bank of America

By Sara Rosenberg

New York, May 30 - Archstone-Smith's buyout by Tishman Speyer and Lehman Brothers will in part be funded by a new credit facility, according to a news release.

Lehman Brothers and Bank of America are the joint lead arrangers on the deal.

Under the terms of the agreement, Tishman and Lehman will acquire all outstanding common shares of beneficial interest in Archstone-Smith for $60.75 per share in cash. The transaction is valued at $22.2 billion, including the assumption and refinancing of Archstone-Smith's outstanding debt and excluding transaction costs.

Completion of the transaction, which is currently expected to occur in the third quarter, is subject to customary closing conditions and the approval of Archstone-Smith's shareholders. The transaction is not contingent on financing.

Archstone-Smith is an Englewood, Colo.-based real estate investment trust. Tishman Speyer is a New York-based owner, developer, operator and fund manager of real estate.

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