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RAIT Financial Trust Prices a Senior Note Offering

By: ,

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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