Thursday, September 20, 2007
PHILADELPHIA, Sep. 20, 2007 (Business Wire) -- RAIT Financial Trust ('RAIT') (NYSE:RAS) announced the closing on September 13, 2007 of a EUR 900 million European real estate securitization transaction managed by a subsidiary of RAIT. RAIT purchased EUR 17.5 million of unrated notes in the securitization and will earn collateral management and origination fees. This is RAIT's second Euro-denominated securitization backed primarily by subordinated and senior debt issued by real estate companies in Europe.
In this transaction, EUR 820.25 million of investment grade notes, EUR 37 million of non-investment grade notes and EUR 42.75 million of unrated notes were issued. The weighted-average interest rate of the investment grade securities was Euribor plus 49 basis points at issuance.
The aggregate outstanding principal balance of the assets acquired by the securitization on the closing date was approximately EUR 444 million. The remainder of the net proceeds of the securitization will be used to acquire similar assets by September 15, 2008, the ramp-up completion date. This transaction represents the thirteenth securitization transaction managed by RAIT and its subsidiaries.
The offering of the securities referred to herein was made by certain placement agents pursuant to a private placement. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The securities have not been and will not be registered under the Securities Act or applicable state securities laws and the issuer of the securities has not been registered and will not be registered under The Investment Company Act of 1940.
About RAIT Financial Trust
RAIT Financial Trust is a specialty finance company that provides a comprehensive set of debt financing options to the real estate industry in the United States and Europe. We originate and invest in commercial mortgages, mezzanine loans and other loans, trust preferred securities, subordinated debentures and other real estate-related debt securities and investments. We seek to deliver risk-adjusted returns to our shareholders. Additional information on RAIT is available on our website at www.raitft.com.
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