(Read more on the debt and equity markets.)
PHILADELPHIA-RAIT Financial Trust has priced an offering to sell 1.6 million shares of newly designated 8.88% series C cumulative redeemable preferred shares at $25 a share. It anticipates net proceeds, before expenses, of $38.7 million.
It has also granted the underwriters an option, exercisable within 30 days after the date of delivery of the shares, to purchase up to 240,000 additional shares to cover over-allotments. According to the company's SEC filing, it expects the series C shares to be ready for delivery on or about July 5.
RAIT has applied to list the preferred share on the NYSE under the symbol RAS PrC. The securities will pay a dividend of 8.875% a year on the $25 liquidation preference.
Bear Stearns & Co. is the sole book-running manager of the offering. Piper Jaffray, RBC Capital Markets and Stifel Nicolaus are co-lead managers, and Friedman, Billings, Ramsey & Co. is co-manager. According to the prospectus filed with the SEC, the locally based financial REIT expects to use the proceeds for general trust purposes. Betsey Cohen is chairman of RAIT; Daniel Cohen is CEO.
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