Locally based Resource America Inc., a specialized asset management business, established RCC this March to purchase and manage a diversified portfolio of real estate-related securities and commercial finance assets. Pamela Schreiber, VP of investor relations for RAI, tells GlobeSt.com that RCC is "externally managed by Resource Capital Corp., which is a wholly owned subsidiary of RAI, but RCC is not a direct subsidiary of RAI." She says there is overlapping management among the companies and RAI "will be obtaining management fees."
A majority of the RSO stock will be newly issued shares with the balance from sales by current stockholders. Among the major asset classes targeted by RCC are commercial mortgage-backed securities, mezzanine debt related to commercial real estate, and syndicated bank loans. According to the filing, RCC generated $484,000 in net interest income during its approximately first three weeks of formation in March.
The timing of the IPO and the pricing of shares are yet to be determined, according to Schreiber. The underwriters are Credit Suisse First Boston; Friedman, Billings, Ramsey & Co.; Citigroup Global Markets and JP Morgan Securities. Proceeds from the IPO will be used to repay a portion of RCC's debt with CSFB. Schreiber confirms a published report that, as of May 31, the debt totaled close to $769 million.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.