RAIT Financial Trust Prices a Senior Note Offering
By: Tim McPartland,
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.