RAIT Financial Trust Prices a Senior Note Offering

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RAIT Financial Trust (ticker:RAS)(a REIT) has priced a senior note offering at 7.125%.


This issue holds some interest to us as it has a maturity date of 8/30/2019 and this shorter maturity is attractive.  When (if) interest rates finally start to rise this issue should have less volitility than a debt issue with maturity dates that are 20, 30 or 40 years out.

RAIT has 3 different preferred issues outstanding with current yields of 7.97% to 8.69% as well as one other debt issue (a 7.625% issue with a current yield of 7.85%) and the attractiveness of this new issue should be weighed against the risks and rewards for each of the other issues. Note that the outstanding issue of debt has a maturity date of 2024 versus 2019 for this new issue.  Shorter maturities are most desired so there is a premium to be paid for this date.


The ticker symbol for this new issue has not yet been published, but we believe it will trade in the next 3 business days.

Details of the offering are here.

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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