RAIT Financial launches $35 million $25-par senior notes due 2019; price talk 7.25% area

By Stephanie N. Rotondo

Phoenix, Aug. 11 – RAIT Financial Trust plans to sell at least $35 million of $25-par senior notes due Aug. 30, 2019, the company said in a prospectus filed with the Securities and Exchange Commission on Monday.

The non-rated deal is expected to price in the 7.25% area, a trader said.

Deutsche Bank Securities Inc., Barclays, Keefe Bruyette & Woods and Credit Suisse Securities (USA) LLC are the joint bookrunners. Senior co-managers are Ladenburg Thalmann, MLV & Co. LLC and William Blair & Co.

Compass Point, Drexel Hamilton and National Securities Corp. are acting as co-managers.

Interest will be payable on the last day of February, May, August and November, beginning Nov. 30. The notes cannot be called until Aug. 30, 2017.

The redemption price is par plus accrued interest.

The company can also redeem the notes upon a fundamental change at 101% of par plus accrued interest.

The Philadelphia-based real estate investment trust will use the proceeds for working capital and general trust purposes.

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