Front Yard stock surges 21% after negotiating higher price from Ares/Pretium

  • Front Yard Residential (NYSE:RESI) jumps 21% in premarket trading after Pretium and funds managed by Ares Management (NYSE:ARES) boost the price they'll pay for Front Yard to $16.25 per share in cash from $13.50 in response to another party submitting a binding proposal for REIT.
  • The new price values RESI at ~$2.5B, including debt to be assumed or refinanced, and represents a 63% premium over RESI's closing share price on Oct. 16, 2020, the last trading day before it entered into the merger pact.
  • “After receiving a binding proposal reflecting a higher purchase price for Front Yard, Front Yard advised the Pretium Partnership of the proposal as required by the terms of the merger agreement, which led to the Pretium Partnership increasing the price of our transaction with them,” said Rochelle R. Dobbs, Front Yard’s chair.
  • Previously: Front Yard Residential going private in $2.4B deal (Oct. 19)

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