Resource Capital Corp. Announces Full Redemption of its Outstanding 8.25% Series B Cumulative Redeemable Preferred Stock
February 21 2018 - 4:10PM
Resource Capital Corp. (NYSE:RSO) (the “Company”) today announced
that on March 26, 2018 (the “Redemption Date”) it will redeem all
shares of its 8.25% Series B Cumulative Redeemable Preferred Stock
(the “Series B Preferred Stock”) outstanding on the Redemption
Date. The shares of Series B Preferred Stock will be redeemed
at a redemption price of $25.00 per share, plus all accrued and
unpaid dividends up to, but not including, the Redemption Date in
an amount equal to $0.32083 per share of Series B Preferred Stock,
for a total payment of $25.32083 per share of Series B Preferred
Stock. This redemption is in addition to the 930,983 shares
of Series B Preferred Stock that were redeemed on January 31, 2018.
From and after the Redemption Date, dividends on
the Company’s Series B Preferred Stock will cease to accrue, the
Series B Preferred Stock will no longer be outstanding and,
therefore, all rights of the holders of such shares will terminate,
except for the right of the holders to receive the cash payable
upon such redemption without interest. Upon redemption, the
Series B Preferred Stock will be delisted from trading on
the New York Stock Exchange. Annual savings resulting
from this redemption of Series B Preferred Stock will be
approximately $9.5 million.
All shares of Series B Preferred Stock are held
in book-entry form through the Depository Trust Company (“DTC”).
Payment to DTC for the redeemed shares of Series B Preferred
Stock will be made by American Stock Transfer & Trust Company,
LLC, as redemption agent.
The notices of redemption and related materials
will be mailed to the registered holders of Series B Preferred
Stock on or about February 22, 2018. Questions relating to,
and requests for additional copies of, the notices of redemption
and the related materials should be directed to the redemption
agent, American Stock Transfer & Trust Company, LLC, at 6201
15th Avenue, Brooklyn, New York 11219, Attention:
Reorganization Department, telephone 877-248-6417.
Bob Lieber, Chief Executive Officer of the
Company, stated, “Redeeming the balance of the shares of our Series
B Preferred Stock is another significant step in our efforts to
restore investor confidence in the Company’s common equity by
increasing bottom line profits.”
Matt Stern, President of the Company, stated,
“By eliminating the high dividend payments associated with both the
Series A Preferred Stock, which the Company redeemed in January,
and the Series B Preferred Stock, the Company has continued to
improve its balance sheet and will save approximately $13.7 million
on an annual basis, equal to $0.44 per common share.”
About Resource Capital
Corp.
Resource Capital Corp. is a real estate
investment trust that is primarily focused on originating, holding
and managing commercial mortgage loans and other commercial real
estate-related debt investments. The Company is externally managed
by Resource Capital Manager, Inc., an indirect wholly-owned
subsidiary of C-III Capital Partners LLC, a leading commercial
real estate investment management and services company engaged in a
broad range of activities.
Forward-Looking Statements
This press release contains 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 “may,” “trend,” “will,”
“continue,” “expect,” “intend,” “anticipate,” “estimate,”
“believe,” “look forward” or other similar words or terms. Because
such statements include risks, uncertainties and contingencies,
actual results may differ materially from the expectations,
intentions, beliefs, plans or predictions of the future expressed
or implied by such forward-looking statements. Factors that can
affect future results are discussed in the documents filed
by the Company from time to time with the Securities
and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statement to
reflect new or changing information or events after the date hereof
or to reflect the occurrence of unanticipated events, except as may
be required by law.
For more information, please visit the Company’s
website
at www.resourcecapitalcorp.com or
contact investor relations
at IR@resourcecapitalcorp.com.
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