RAIT Financial greenshoe lifts 4% convertible sale to $141.75 million

By Tali David

Minneapolis, Jan. 10 - Underwriters for RAIT Financial Trust's 4% convertible senior notes due 2033 partially exercised their over-allotment option, adding an additional $16.75 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $125 million of the convertibles on Dec. 4 at 99 and with a 12.5% initial conversion premium.

As previously reported, Barclays and Deutsche Bank Securities Inc. were the joint bookrunning managers.

RAIT intends to use the proceeds for working capital and general trust purposes, including potential repurchases of its outstanding 7% convertible senior notes due April 1, 2031. A portion of the proceeds is also being used to fund a capped call transaction with an affiliate of Barclays.

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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