Resource Capital talks minimum $75 million fixed-to-floating cumulative preferreds at 8.75% area

By Stephanie N. Rotondo

Phoenix, June 3 - Resource Capital Corp. plans to price at least $75 million of series C fixed-to-floating rate cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is in the 8.75% area, according to a trader.

Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners. Deutsche Bank Securities Inc. and Keefe Bruyette & Woods are acting as joint lead managers. MLV & Co. LLC is the co-manager.

The dividend will be fixed until July 30, 2024, at which time it will begin to float at Libor plus a spread.

Dividends will be paid on a quarterly basis.

On or after July 30, 2024, the preferreds become redeemable at par plus accrued dividends. Additionally, the company can redeem the shares in the event of a change of control.

If there is a change of control, holders will also have the option to convert their preferred holdings into common stock.

The company intends to list the new preferreds on the New York Stock Exchange under the ticker symbol "RSOPC."

Proceeds will be used to make investments related to the company's business and for general corporate purposes.

Resource Capital is a New York-based real estate investment trust.

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