RAIT Financial Trust Closes its Sixth Non-Recourse, Floating-Rate CMBS Transaction Totaling $258.0 Million
November 30 2016 - 4:15PM
Business Wire
RAIT Financial Trust (NYSE: RAS) ("RAIT") announced today the
closing of its sixth non-recourse, floating-rate CMBS transaction
the underlying assets of which consist of floating rate commercial
real estate first lien mortgage loans and pari passu participation
interests in mortgage loans, all of which were originated by
subsidiaries of RAIT. The transaction involved the sale by a RAIT
subsidiary of investment grade notes totaling approximately $216.7
million with a weighted average cost of LIBOR plus 2.03%, which
provides an advance rate to the RAIT subsidiary of approximately
84.0%. RAIT affiliates retained all of the below investment grade
and un-rated subordinated interests totaling approximately $41.3
million. UBS Securities LLC acted as sole structuring agent. UBS
Securities LLC, Citigroup Global Markets Inc. and Barclays Capital
Inc. acted as co-lead and joint book-running managers.
“We are pleased to announce the closing of our sixth RAIT
sponsored floating-rate CMBS transaction,” said Scott Davidson,
RAIT’s President and incoming Chief Executive Officer. “The
transaction, comprised of RAIT originated mortgage loans and
participation interests in mortgage loans, continues our history of
creating offerings that deliver strong returns for RAIT
shareholders while maintaining the credit quality and structural
integrity prized by both bond investors and our internal credit
process. As a seasoned issuer with a strong market presence we look
forward to continuing to successfully access the floating rate
securitization market for the benefit of all our stakeholders.”
The bonds were 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.rait.com or call Investor Relations at 215.207.2100.
Forward-Looking Statements
This press release may contain 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 our use of forward-looking terminology such as
“guidance,” “may,” “plan,” “should,” “expect,” “intend,”
“anticipate,” “estimate,” “believe,” “seek,” “opportunities” or
other similar words or terms. Such forward-looking statements
include, but are not limited to, statements regarding RAIT’s
ability to continue to engage in offerings that deliver strong
returns for RAIT shareholders and RAIT’s future ability to
successfully access the floating rate securitization market for the
benefit of all our stakeholders. Such forward-looking statements
are based upon RAIT’s historical performance and its current plans,
estimates and expectations and are not a representation that such
plans, estimates, or expectations will be achieved. Such statements
are subject to known and unknown risks, uncertainties and
contingencies that may cause actual results to differ materially
from the expectations, intentions, beliefs, plans, estimates or
predictions of the future expressed or implied by such
forward-looking statements. These risks, uncertainties and
contingencies include, but are not limited to, whether RAIT’s
securitizations will continue to deliver strong returns for RAIT
shareholders while maintaining their credit quality and structural
integrity, RAIT’s ability to continue to access the floating rate
securitization market on acceptable terms that benefit it and its
stakeholders, and other factors described in RAIT’s Annual Report
on Form 10-K and in other filings with the SEC. RAIT undertakes no
obligation to update these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161130006104/en/
RAIT Financial Trust ContactAndres Viroslav,
215-207-2100aviroslav@rait.com