Ladenburg, RAIT announce programs; recent deals stay busy

By Stephanie N. Rotondo

Phoenix, June 13 – The preferred stock new issue calendar took a breather Friday, though two new at-the-market programs were announced late in the day.

“I think we’ll see some more stuff come next week,” one trader opined.

Ladenburg Thalmann Financial Services Inc. said it was selling up to $75 million additional 8% series A cumulative redeemable preferreds (NYSE: LTSPA) in a continuous offering.

The issue ended the day off a penny at $22.07.

Mitsubishi UFJ Securities and Barrington Research are running the program.

Proceeds will be used to prepay notes from various lenders, including an affiliate of Dr. Frost, Vector Group Ltd. and an affiliate of Richard J. Lampen, president and chief executive officer. The notes were taken on to finance the company’s acquisition of Securities America.

Any remaining funds will be used for general corporate purposes.

And RAIT Financial Trust will sell up to $150 million of three series of preferreds in an “at-the-market” offering.

The three series included are the 7.75% series A cumulative redeemable preferred shares (NYSE: RASPA), the 8.375% series B cumulative redeemable preferred shares (NYSE: RASPB) and the 8.875% series C cumulative redeemable preferred shares (NYSE: RASPC).

MLV & Co. LLC will make the sales.

The secondary market gyrated a bit throughout the session but managed to eke out some gains by the end of business.

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