Deerfield Triarc to Buy External Manager

Deerfield Triarc Capital Corp., a Chicago-based real estate investment trust, has announced an agreement to acquire its external manager, Deerfield & Co., from Triarc Cos. and minority interest holders for a total consideration of approximately $225 million.The purchase price would consist of approximately $75 million in aggregate principal amount of five-year senior secured notes (with an initial interest rate of 500 basis points above the London interbank offered rate) plus 15 million shares of newly issued Deerfield Triarc cumulative convertible preferred stock to be converted on a one-for-one basis into the REIT's common stock upon the approval of the company's shareholders. The parties had mutually terminated an April acquisition agreement, citing instability in the credit markets and an inability to complete the necessary financing on acceptable terms. The REIT, which invests in real-estate-related securities and various other asset classes, can be found online at http://www.deerfieldtriarc.com.