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RAIT Financial Trust Closes $135 Million Non-Recourse, Floating-Rate CMBS Transaction

Stocks in this article: RAS

RAIT Financial Trust (NYSE: RAS) ("RAIT") announced today the closing of a $135 million non-recourse, floating-rate CMBS transaction at a weighted average coupon of LIBOR + 1.85%. The CMBS transaction is collateralized primarily by floating rate commercial real estate first mortgage loans originated by RAIT. A total of $101.3 million of investment grade bonds were issued, representing an advance rate of approximately 75%. RAIT will retain un-rated subordinated bonds and the equity interest in the transaction equal to $33.8 million. RAIT expects to earn a double-digit yield on its invested equity, inclusive of fees less transaction expenses, assuming all of the underlying loans are repaid at their stated maturity. Credit Suisse Securities (USA) LLC acted as placement agent and note purchaser for the transaction.

The bonds are being offered inside the United States to (1) qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and (2) to other institutional investors that are accredited investors within the meaning of rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act, and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The bonds have not been registered under the Securities Act or applicable state or foreign securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the bonds.

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. For more information, please visit www.raitft.com or call Investor Relations at 215.243.9000.



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