|By Marketwired .||
|December 16, 2013 03:30 PM EST||
NEW YORK, NY -- (Marketwired) -- 12/16/13 -- Resource Capital Corp. (NYSE: RSO) (the "Company") announced that its newly formed subsidiary, Resource Capital Corp. CRE Notes 2013, Ltd. (the "Issuer"), will issue $260.8 million of non-recourse, floating-rate notes ("Offered Notes") at a weighted average coupon of LIBOR + 1.86%. The Offered Notes are collateralized by floating rate commercial real estate first mortgage loans originated by wholly-owned subsidiaries of the Company with a principal balance of $307.8 million, representing an advance rate of approximately 85%. The Company will retain the subordinated notes and the preferred shares ("Invested Equity") in the transaction equal to approximately $47 million. The Company expects to earn a return on its Invested Equity in excess of 20%, inclusive of fees and transaction expenses.
The offering is expected to close on or about December 23, 2013, subject to the satisfaction of customary closing conditions. The Issuer intends to use the net proceeds of this offering to pay the purchase price of the mortgage loans and to repay amounts owed in respect of certain pre-closing date warehouse financing facilities.
The Securities will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Offering was made privately in transactions exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").
This press release is not an offer to sell any securities of the Company and is not soliciting an offer to buy such securities. It is issued pursuant to Rule 135c under the Securities Act.
This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events.
The Company is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt and equity investments. The Company also makes other commercial finance investments. The Company is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), an asset management company that specializes in real estate and credit investments.