RAIT buys holder's 6.875% convertibles due 2027 for 12½% note, cash

By Susanna Moon

Chicago, Aug. 3 - RAIT Financial Trust agreed to purchase from Moses Marx $98.28 million principal amount of its 6.875% convertible senior notes due 2027 for a purchase price of $53 million, according to an 8-K filing with the Securities and Exchange Commission.

RAIT and Marx closed on the securities purchase agreement on July 31.

The purchase price consisted of a $43 million 12½% senior secured note due April 20, 2014 and $10 million in cash. RAIT also paid Marx about $2 million of accrued interest on the convertibles through July 31.

The senior secured note is fully and unconditionally guaranteed by wholly owned subsidiaries RAIT Asset Holdings II Member, LLC and RAIT Asset Holdings II, LLC.

RAIT is a Philadelphia-based real estate investment trust that provides debt financing to the real estate industry.

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