This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RAIT Financial Trust Prices Public Offering Of Convertible Senior Notes Due 2033

Stocks in this article: RAS

RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced the pricing of its public offering of $125 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2033 (the “Notes”) in an underwritten public offering. RAIT granted the underwriters a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the Notes in the proposed offering to cover over-allotments. The Notes will be senior unsecured obligations of RAIT. RAIT expects the offering to close on December 10, 2013, subject to customary closing conditions. Barclays Capital Inc. and Deutsche Bank Securities are acting as joint book-running managers for the offering. JMP Securities is acting as co-manager for the offering.

The Notes will pay interest semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2014, at an annual rate of 4.00%, and will mature on October 1, 2033 unless earlier redeemed, repurchased or converted. The conversion rate will initially be 104.4523 RAIT common shares per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $9.57 per common share, which is a 12.5% premium to the last reported sale price of RAIT’s common shares on December 4, 2013. The conversion rate is subject to adjustment in certain events. Upon conversion, RAIT will deliver or pay, as the case may be, common shares, cash or a combination of common shares and cash, at RAIT’s election.

The net proceeds to RAIT from this offering, after deducting underwriting discounts and estimated offering expenses, will be approximately $120.9 million (assuming no exercise by the underwriters of their option to purchase additional notes).

RAIT intends to use a portion of the net proceeds from the sale of the Notes to repurchase or repay a portion of our indebtedness, including the potential repurchase of RAIT’s 7.00% Convertible Senior Notes which mature April 1, 2031. RAIT also intends to use a portion of the net proceeds of this offering to fund payment of the cost of a capped call transaction that RAIT has entered into with an affiliate of Barclays Capital Inc. (the “Hedge Counterparty”) in connection with the pricing of the Notes. Any remaining net proceeds from the sale of the Notes will be used for working capital and general trust purposes. If the underwriters exercise their option to purchase additional Notes, RAIT intends to use a portion of the net proceeds from the sale of additional Notes to fund our entry into an additional capped call transaction with the Hedge Counterparty.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs