RAIT Financial gets tenders for $34 million of 6.875% convertibles

By Susanna Moon

Chicago, Dec. 30 - RAIT Financial Trust noteholders tendered $34 million of the company's 6.875% convertible senior notes due 2027 in exchange for 8,126,000 RAIT common shares and $3,111,000 of cash.

Noteholders will receive 239 common shares, a cash payment of $91.50 and accrued interest to the settlement date for each $1,000 principal amount of notes.

The exchange offer expired at 11:59 p.m. ET on Dec. 29. Settlement was expected to occur on Dec. 30. The offer began Dec. 1.

There is about $246.4 million principal amount of the notes outstanding following the offer.

On Dec. 14, RAIT increased the payment amount in the exchange offer for its 6.875% convertibles and decreased the maximum principal amount of convertibles it would accept.

The company said it would accept up to $55.47 million principal amount of convertibles, down from $62.83 million. The payment was increased from 211 shares plus $80.75 in cash per note.

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

The dealer manager was UBS Investment Bank (888 719-4210 or 203 719-4210), and the information agent was 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.