RAIT to offer shares, cash in exchange for 6.875% convertibles

By Angela McDaniels

Tacoma, Wash., Nov. 4 - RAIT Financial Trust plans to hold an exchange offer for its $280,363,000 principal amount of 6.875% convertible senior notes due 2027, according to an S-4 filing with the Securities and Exchange Commission.

The company will offer common shares of beneficial interest and cash in exchange for the convertibles.

The amount of convertibles accepted for exchange will be subject to a cap. If the amount of convertibles tendered exceeds this cap, the convertibles will be accepted on a pro rata basis.

The offer will be conditioned on the receipt of at least $25 million of the convertibles.

The company noted that its acceptance of convertibles from any particular holder will also be subject to the condition that the number of common shares received by that person, when combined with common shares already held, does not exceed the 8.3% ownership limitation established by RAIT's declaration of trust or the ownership limitation imposed by the New York Stock Exchange.

Convertibles accepted in the offer will be canceled.

The dealer manager will be UBS Investment Bank (888 719-4210 or 203 719-4210), and the information agent will be D.F. King & Co., Inc. (212 269-5550 for banks and brokers, others call 800 431-9633).

RAIT is a Philadelphia-based real estate investment trust that provides debt financing to the real estate industry.

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