RAIT Financial Trust Announces Closing of Public Offering of its 7.00% Convertible Senior Notes Due 2031, Including the Full Exercise of the Overallotment Option

PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced that it has completed its previously announced offering of its 7.00% Convertible Senior Notes due 2031 (the “Notes”) in an underwritten public offering. RAIT issued $115.0 million aggregate principal amount of the Notes in this offering, which included the amount sold upon the exercise in full of the over-allotment option granted to the underwriters. BofA Merrill Lynch acted as sole book-running manager and FBR Capital Markets & Co. acted as co-manager for the offering.

RAIT raised total net proceeds of $108.750 million after deducting underwriting fees and estimated offering expenses. RAIT used approximately $75 million of the net proceeds from the Notes offering to repurchase a portion of its outstanding 6.875% Convertible Senior Notes due 2027, and intends to use the remainder of the net proceeds to repay indebtedness and for general trust purposes, including working capital.

The registration statement pursuant to which the offering was made is effective pursuant to the Securities Act of 1933. Offers and sales of the Notes may be made only by the prospectus and related prospectus supplement, which may be obtained from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attn: Prospectus Department or email [e-mail].

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor does it constitute an offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale is unlawful.

About RAIT Financial Trust

RAIT Financial Trust manages a portfolio of real estate related assets, provides a comprehensive set of debt financing options to the real estate industry and invests in real estate related assets. RAIT's management uses its experience, knowledge and relationship network to seek to generate and manage real estate related investment opportunities for RAIT and for outside investors.