By Rebecca Melvin
Concord, N.H., April 29 – Lument Finance Trust Inc. priced $60 million $25-par series A cumulative redeemable preferred stock at par with a dividend of 7.875% on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The dividend is payable quarterly, with the first dividend to be paid on July 15, 2021.
The preferreds are non-callable until May 5, 2026, when they become callable at par plus accrued and unpaid dividends.
The preferreds are also redeemable upon a change-of-control or delisting event.
Piper Sandler & Co. and Raymond James & Associates Inc. are the joint bookrunning managers.
There is a 30-day option to purchase up to an additional 15% of the preferreds.
The proceeds are expected to be used to make additional investments in target assets consistent with its investment strategy and for general corporate purposes.
The company has applied to list the preferred stock on the New York Stock Exchange under the ticker symbol “LFTPrA.”
Formerly Hunt Cos. Finance Trust Inc., Lument is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments.
| Issuer: | Lument Finance Trust Inc.
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| Issue: | Cumulative redeemable preferred shares (series A)
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| Amount: | $60 million, or 2.4 million shares
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| Greenshoe: | 15% of principal amount
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| Maturity: | Perpetual
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| Bookrunners: | Piper Sandler & Co. and Raymond James & Associates Inc.
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| Co-managers: | B. Riley Securities Inc. and JonesTrading Institutional Services LLC
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| Dividend: | 7.875%
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| Price: | Par of $25.00
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| Yield: | 7.875%
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| Call features: | Beginning May 5, 2026 at par
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| Trade date: | April 28
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| Settlement date: | May 5
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| Distribution: | SEC registered
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| Listing: | NYSE: LFTPrA
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