RAIT Financial Trust Closes its Eighth Non-Recourse, Floating-Rate CMBS Transaction Totaling $259.8 Million
November 29 2017 - 4:05PM
Business Wire
RAIT Financial Trust (NYSE: RAS) ("RAIT") announced today the
closing, on November 29, 2017, of its eighth non-recourse,
floating-rate CMBS transaction, the underlying assets of which
consist of twenty-one floating-rate commercial real estate first
lien mortgage loans and two pari passu participation interests in
floating-rate mortgage loans, all of which were originated by
subsidiaries of RAIT. The transaction involved the sale by a RAIT
subsidiary of non-recourse, investment grade notes totaling
approximately $215.6 million with a weighted average cost of LIBOR
plus 1.29%, which provides an advance rate to the RAIT subsidiary
of approximately 83.0%. RAIT affiliates retained all of the below
investment grade and un-rated subordinated interests totaling
approximately $44.2 million. Barclays Capital Inc. acted as sole
structuring agent. Barclays Capital Inc., Citigroup Global Markets,
Inc. and UBS Securities LLC acted as co-lead managers and joint
bookrunners.
Scott Davidson, RAIT’s Chief Executive Officer said, “We are
pleased to announce the closing of our eighth RAIT sponsored
stand-alone floating-rate CMBS transaction. The transaction
delivers strong risk-adjusted returns and further highlights the
strength of RAIT’s commercial real estate lending business.”
The notes 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 notes 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
notes.
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
“delivers,” “highlights,” “may,” “plan,” “expect,” “anticipate,”
“estimate,” “will” or other similar words or terms. Such
forward-looking statements include, but are not limited to,
statements regarding the returns on RAIT’s capital that the
securitization will achieve, the strength of RAIT’s lending
business, the response of investors to the credit quality of the
loans RAIT originates and RAIT’s maintenance of a leading market
presence in the floating-rate securitization market. 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 floating rate CMBS transactions will provide
strong risk-adjusted returns on RAIT’s capital, whether RAIT will
maintain the strength of RAIT’s lending business, whether investors
will continue to respond positively to the credit quality of the
loans RAIT originates and whether RAIT will maintain a leading
market presence in the floating-rate securitization market 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