By Susanna Moon
Chicago, March 19 - Resource Capital Corp. began an at-the-market offering to sell up to $37.5 million, or 1.5 million shares, of its 8.25% series B cumulative redeemable preferred stock, according to an 8-K filing and a 424B5 filing with the Securities and Exchange Commission.
The company entered into the sales agreement on March 15 with Resource Capital Manager, Inc. and MLV & Co. LLC. The preferreds will be sold from time to time by MLV as sales agent.
The liquidation preference is $25 per share.
Distributions on the preferreds are cumulative and payable quarterly at the rate of 8.25%, or $2.0625 per share annually.
The preferreds are non-callable before Oct. 2, 2017. Beginning then, the preferreds are callable at the liquidation preference plus accrued distributions to but excluding the redemption date.
In addition, upon a change of control, the preferreds are callable within 120 days after the first date of the change of at a redemption price of $25 per share plus accrued distributions to but excluding the redemption date.
Upon a change of control, holders may put the preferreds or convert some or all of them into common stock on the change-of-control conversion date.
The preferreds are listed on the New York Stock Exchange under the symbol "RSOPrB." On March 15, there were 1,920,660 preferreds issued and outstanding and the last reported sales price on the NYSE was $25.27.
Resource Capital is a New York-based specialty finance company that focuses on commercial real estate assets, commercial mortgage-backed securities and commercial finance. It is organized as a real estate investment trust.
| Issuer: | Resource Capital Corp.
|
| Issue: | Series B cumulative redeemable preferred stock
|
| Amount: | Up to $37.5 million
|
| Shares: | Up to 1.5 million
|
| Dividends: | 8.25%, payable quarterly
|
| Liquidation preference: | $25
|
| Call option: | At $25 beginning Oct. 2, 2017
|
| Agent: | MLV & Co. LLC
|
| Listing: | NYSE: RSOPrB
|
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