BRT Realty retires $15.9 million junior subordinated notes due 2036

By Angela McDaniels

Tacoma, Wash., Sept. 30 - BRT Realty Trust has retired $15.9 million of its outstanding unsecured junior subordinated notes due April 30, 2036, according to a company news release.

In exchange for the notes, the noteholder received cash and some replacement securities acquired by BRT in the open market during September. The cost to BRT was $7.95 million plus expenses.

In connection with the transaction, BRT also paid $318,000 to the collateral manager to cover fees and expenses of the noteholder related to the exchange arrangement.

The company said the transaction will result in a net gain of about $6.8 million.

Following the exchange, $42.4 million principal amount of the notes remains outstanding.

According to an 8-K filing with the Securities and Exchange Commission, BRT issued $58.3 million of the notes to affiliates of Taberna Capital Management LLC in May in exchange for $55 million of trust preferred securities.

BRT is a mortgage-oriented real estate investment trust based in Great Neck, N.Y.

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