RAIT greenshoe lifts 7% convertibles due 2031 to $115 million

By Melissa Kory

Cleveland, March 21 - RAIT Financial Trust announced that the underwriters of its recent sale of 7% convertible senior notes due 2031 exercised their $15 million over-allotment option in full, lifting the offering to $115 million.

RAIT priced $100 million of the 20-year convertibles on March 15 to yield 7% with an initial conversion premium of 9.87%.

BofA Merrill Lynch acted as sole book-running manager and FBR Capital Markets & Co. acted as co-manager for the offering.

RAIT raised $108.750 million in proceeds and used about $75 million of the proceeds to repurchase a portion of its outstanding 6.875% convertible senior notes due 2027. RAIT intends to use the remainder of the proceeds to repay debt and for general trust purposes, including working capital.

Philadelphia-based RAIT is a real estate investment trust focused on properties in Philadelphia and in the Baltimore to Washington, D.C., corridor.

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