RAIT raises $2.2 million via at-the-market preferred offering so far

By Susanna Moon

Chicago, Aug. 6 - RAIT Financial Trust raised $2.2 million of proceeds through the sale of preferred shares in an at-the-market offering through Aug. 1.

Covered by the at-the-market offering are the company's 7.75% series A cumulative redeemable preferreds, its 8.375% series B cumulative redeemable preferreds and its 8.875% series C cumulative redeemable preferreds.

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, according to a 10-Q filing with the Securities and Exchange Commission.

During the period through June 30, the company issued the following:

• 27,931 series A preferreds at a weighted-average price of $20.37 per share for proceeds of $600,000;

• 13,320 series B preferreds at a weighted-average price of $21.32 per share for proceeds of $300,000; and

• 21,430 series C preferreds at a weighted-average price of $22.39 per share for proceeds of $500,000.

From July 1 through Aug. 1, the company issued the following:

• 8,069 series A preferreds at a weighted-average price of $20.30 per share for proceeds of $200,000;

• 10,680 series B preferreds at a weighted-average price of $21.34 per share for proceeds of $200,000; and

• 18,570 series C preferreds at a weighted-average price of $22.34 per share for proceeds of $400,000.

The liquidation preference is $25.00 per preferred. The 100,000 preferreds sold through Aug. 1 have a combined liquidation preference of $2.5 million.

After the preferreds issued through Aug. 1, 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.

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.