REIT Resource Capital Does a “At the Money’ Preferred Offering

Commercial lending REIT Resource Capital(ticker:RSO) has affirmed a prior ‘at the money’preferred stock offering and added another issue to the issues already being offered.  The offering will cover all 3 outstanding issues of preferred stock that RSO currently has outstanding.  The issues covered are–RSO-A (8.50%), RSO-B (8.25%) and RSO-C (8.625% Floating).  They can sell up to 3,000,000 shares.

In the case of the RSO-A and RSO-B shares there was already a ‘at the money’ offering in place since last December–the program has been reaffirmed by Resource Capital and the RSO-C shares have been added to the program.

An ‘at the money’ offering is governed under the Securities Act of 1933, Rule 415.  We have found the best resource for reading these old rules is at the Cornell Univeristy website.  For those looking to read exact details they are here.

For use individual investors this simply results in some ‘overhang’ of shares potentially being sold, thus holding the price at a bit of a discount from where it might otherwise trade.