RAIT Financial Trust Forms Special Committee to Explore Strategic Alternatives
September 07 2017 - 8:30AM
Business Wire
RAIT Financial Trust (NYSE: RAS) (“RAIT”) today announced that
the Board of Trustees of RAIT (the “Board”) has formed a committee
of independent members (the “Special Committee”) to explore and
evaluate strategic and financial alternatives to enhance
shareholder value and capitalize on RAIT’s established and
respected commercial real estate lending platform. Such
alternatives may include, but are not limited to, (i) refinements
of RAIT’s operations or strategy, (ii) financial transactions, such
as a recapitalization or other change to RAIT’s capital structure
and (iii) strategic transactions, such as a sale of all or part of
RAIT.
Michael Malter, Chairman of the Board and a member of the
Special Committee, said, “Our Board of Trustees and management team
continue to focus on executing on the current strategic plan and
remain committed to maximizing value for our shareholders. After
careful consideration, the Board believes now is the appropriate
time to explore a broad range of strategic and financial
alternatives that may have the potential to further unlock and
enhance shareholder value." The other members of the Special
Committee are Justin P. Klein, who serves as Chairman of the
Special Committee, and Thomas D. Wren.
The Special Committee has not set a definitive timetable for
completion of its evaluation, and there can be no assurances that
the process will result in any change in strategy or any
transaction being announced or completed. RAIT does not intend to
make any further public comment regarding the evaluation until the
outcome of the process is determined.
RAIT and the Special Committee have retained Barclays and UBS
Investment Bank as financial advisors and Winston & Strawn LLP
as legal advisor to assist in the evaluation.
About RAIT Financial Trust
RAIT Financial Trust is an internally-managed real estate
investment trust focused on providing debt financing options to
owners of commercial real estate throughout the United States. 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
“strategy,” “transform,” “plan,” “should,” “expect,” “intend,”
“anticipate,” “estimate,” “believe,” “seek,” or other similar words
or terms. Such forward-looking statements include, but are not
limited to, statements regarding RAIT’s review of its strategic and
financial alternatives; RAIT’s initiatives to further simplify its
business to focus on its commercial real estate lending business,
reduce costs, deleverage and enhance value and returns for
shareholders and RAIT’s actions taken or contemplated to enhance
its long-term prospects and create value for its shareholders. 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, the impact of the announcement of RAIT’s review of strategic
and financial alternatives on RAIT’s business, including its
financial and operating results and its employees, capital sources
and customers; RAIT’s ability to continue to sell properties and
repay the related debt; RAIT’s ability to implement any new
strategic and financial alternatives or continue its previously
announced transition to a more focused, cost-efficient and lower
leverage business; final accounting determinations on gains or
losses realized in the event properties are sold for prices that
differ from their carrying value or if property valuations are
adjusted in the process of revaluating properties when they are
characterized as held for disposition or sale and other factors
described in RAIT’s Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q 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.
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RAIT Financial TrustAndres Viroslav,
215-207-2100aviroslav@rait.com