$100m (+14m) sen unsec cb coming tonight from ML. Terms: 20 yr, 5.75-6.25% up 17.5-22.5%, call 5y, puts 5,10,15y. Full pctns. UOP = repay debt/gcp. REIT that does not conjur pleasent memories. Hit hard in 2008, it has attempted to reduce debt (incl 6.875% w/$136m outstanding. Most recent trans 1/11 @88). Credit color will touch on highlights but unless you know this co well it is very tough to get comfortable. Model is redundant, brw weak, -ve gamma so even w/the gr8 carry & b/even you will have to live w/mark to mkt. For those who w/look at model, using L+1100, 35% & blended 200 bp brw = 105. It is small enough to get a few credit long only buyers but as we said, unless you are in bed with company we would RAIT it avoid
REIT providing debt financing options to commercial real estate industry & invests in commercial real estate assets.
PF Cash $27m
PF Debt $1838m
LTM EBITDA $141m
LTM FCF $15m
Debt/Cap 84%
Mkt cap $351m
RAS hit hard by downtown & have been working to reduce debt. Inv portfolio is comprised of $1.1B comm r/e loans, $841m props (mult-family, office), & $705m sec. Solid residential mort port 7/09. Have been working to take out 6.875% converts for several years, $136m (of $425) remain. SOme exch combo stk/cash/secured cvt )due 2014). Most recent trans 1/11 at 88. Most debt secured & non-recourse, most assets encumbered
Our assigned spread L+1100