MVP REIT and MVP REIT II jointly announced that, after reviewing strategic alternatives, a special committee of the board of directors of MVP I has accepted a non-binding Letter of Intent from MVP II regarding a proposed merger of MVP I with MVP II.
In connection with the proposed merger, MVP I also announced that it would suspend its distribution reinvestment plan and share repurchase plan pending the consummation of the proposed merger. In accordance with the distribution reinvestment plan and share repurchase plan, the suspension of the distribution reinvestment plan and share repurchase plan will take effect on May 11, 2017, and June 1, 2017, or 10 days and 30 days, respectively, after the date of this press release providing notice of suspension.
MVP I also announced, in connection with the proposed merger, that the monthly distribution for record holders as of May 24, 2017 — expected to be paid on June 10, 2017 — will consist of a $0.0225 cash distribution per share (3 percent annum based upon the initial $9.00 offering price), a stock dividend equal to .002414 shares of stock for each share owned (3 percent per annum based upon the initial $9.00 offering price), and a special one-time distribution of $0.0105 in additional cash distributions per share (0.7 percent per annum for the remaining two months left in the quarter based upon the initial $9.00 offering price). Thereafter, MVP I anticipates paying monthly cash distributions of $0.0225 per share and stock dividends of .0024 shares for each share of stock owned.