RAIT nets $2.1 million through at-the-market preferred offerings

By Jennifer Chiou

New York, Nov. 6 - RAIT Financial Trust has so far taken in net proceeds of $2.1 million through the sale of preferred shares in an at-the-market offering as of Sept. 30.

Through the end of September, the company said it has issued the following:

• 36,000 of 7.75% series A cumulative redeemable preferreds at a weighted-average price of $20.35 per share for net proceeds of $700,000;

• 24,000 of 8.375% series B cumulative redeemable preferreds at a weighted-average price of $21.33 per share for $500,000 of net proceeds; and

• 40,000 of 8.875% series C cumulative redeemable preferreds ATM at a weighted-average price of $22.37 per share for net proceeds of $900,000.

As reported, RAIT entered into an at-market issuance sales agreement to issue up to $50 million, or 2 million shares, each of the three series of preferreds with MLV & Co. LLC on May 21.

The liquidation preference is $25.00 per preferred.

After the preferreds issued through Sept. 30, there remains 1,964,000, 1,976,000 and 1.96 million of series A preferreds, series B preferreds and series C preferreds, respectively, available for issuance under the at-the-market offering, according to a 10-Q filing with the Securities and Exchange Commission.

Background

When RAIT announced the at-the-market offering on May 21, the company said that it would sell up to $150 million of the preferreds from time to time with MLV as underwriter on a commercially reasonable efforts basis. The sales would be made at market prices.

The series A and series B preferreds are callable at $25.00 at any time. The series C preferreds became callable at $25.00 at any time on July 5. Prior to that time, they were callable only if they ceased to be listed on the NYSE, the NYSE Amex or Nasdaq and the company ceased to be subject to the reporting requirements of the Exchange Act.

Proceeds will be used to make investments and for general trust purposes.

On May 21, the series A preferreds closed at $21.11 (NYSE: RASPA), the series B preferreds closed at $22.00 (NYSE: RASPB) and the series C preferreds closed at $23.10 (NYSE: RASPC).

As of May 18, $69 million of series A preferreds, $56.46 million of series B preferreds and $40 million of series C preferreds were outstanding.

RAIT is a commercial real estate company based in Philadelphia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.