RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced the pricing of
its underwritten public offering of $70.0 million aggregate principal
amount of 7.125% Senior Notes due 2019 (the “Notes”). RAIT granted the
underwriters a 30-day option to purchase up to an additional $10.5
million aggregate principal amount of the Notes in the offering to cover
over-allotments. The Notes will be senior unsecured obligations of RAIT.
RAIT expects the offering to close on August 14, 2014, subject to
customary closing conditions. Deutsche Bank Securities, Barclays, Keefe,
Bruyette & Woods, a Stifel Company, and Credit Suisse are acting as
joint book-running managers for the offering. Ladenburg Thalmann, MLV &
Co. and William Blair are senior co-managers for the offering. Compass
Point, Drexel Hamilton and National Securities Corporation are acting as
co-managers for the offering.
The Notes will pay interest quarterly in arrears on February 28, May 30,
August 30 and November 30 of each year beginning on November 30, 2014,
at an annual rate of 7.125%, and will mature on August 30, 2019 unless
earlier redeemed or repurchased. RAIT will issue the Notes in
denominations of $25 and integral multiples of $25 in excess thereof.
RAIT intends to apply to list the Notes on the New York Stock Exchange
(“NYSE”) within 30 days after the Notes are first issued.
The net proceeds to RAIT from this offering, after deducting
underwriting discounts and estimated offering expenses payable by RAIT,
will be approximately $67.1 million (assuming no exercise by the
underwriters of their option to purchase additional notes).
RAIT intends to use the net proceeds from the proposed sale of the Notes
for working capital and general trust purposes.
A registration statement relating to these securities has been filed and
is effective and on file with the Securities and Exchange Commission
(the “SEC”). Before you invest, you should read the prospectus and the
prospectus supplement relating to the offering of the Notes and other
documents RAIT has filed with the SEC for more complete information
about RAIT and the offering of the Notes. You may obtain electronic
copies of these filed documents at the SEC web site at www.sec.gov.
Copies of the prospectus and the prospectus supplement relating to the
offering of the Notes may also be obtained by requesting copies from the
book-running managers by contacting: Deutsche Bank Securities Inc.,
Attention: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, by
calling (800) 503-4611, or by emailing firstname.lastname@example.org;
Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, New York 11717, telephone at (888) 603-5847 or
by e-mail at Barclaysprospectus@broadridge.com;
Keefe, Bruyette & Woods, Inc., Attn: Syndicate Department, One South
Street, 15th Floor, Baltimore, MD 21202, or by calling (855) 300-7136;
or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department,
One Madison Avenue, New York, New York, 10010, by phone at (800)
221-1037 or by email email@example.com.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor does it constitute an
offer, solicitation or sale of the Notes in any jurisdiction in which
such offer, solicitation or sale is unlawful.
About RAIT Financial Trust
RAIT Financial Trust is an internally-managed real estate investment
trust that provides debt financing options to owners of commercial real
estate and invests directly into commercial real estate properties
located throughout the United States. In addition, RAIT is an asset and
property manager of real estate-related assets.
Forward-Looking Statements and Disclosures
This press release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements can generally be identified by RAIT’s use of
forward-looking terminology such as "may," "will," "expect," "intend,"
"anticipate," "estimate," "believe," "continue," or other similar words.
Because such statements include risks, uncertainties and contingencies,
actual results may differ materially from the expectations, intentions,
beliefs, plans or predictions of the future expressed or implied by such
forward-looking statements. These risks, uncertainties and contingencies
include, but are not limited to: risks disclosed in the prospectus and
the prospectus supplement related to this offering and in RAIT’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2013 filed
with the SEC; the current uncertainty in the global financial markets
and the global economy; disruptions in the financial markets that could
affect RAIT’s ability to complete the offering of the Notes or obtain
additional financing and RAIT’s ability to repay or repurchase any of
its existing or future indebtedness. Statements in this press release
should be evaluated in light of these important factors. RAIT is under
no obligation to, and expressly disclaims any such obligation to, update
or alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
RAIT Financial Trust
Andres Viroslav, 215-243-9000
Source: RAIT Financial Trust