8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): January 8, 2014

RAIT Financial Trust
__________________________________________
(Exact name of registrant as specified in its charter)

Maryland	1-14760	23-2919819
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
2929 Arch St., 17th Floor, Philadelphia, Pennsylvania		19104
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (215) 243-9000

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

As previously reported, on December 4, 2013, we entered into an underwriting agreement between ourselves and Barclays Capital Inc., as representative of the underwriters named in the underwriting agreement, or the underwriters, with respect to the offer and sale, or the offering, of $125.0 million aggregate principal amount of our 4.00% Convertible Senior Notes due 2033, or the 2033 notes, and we granted the underwriters an option, or the overallotment option, exercisable within 30 days to purchase up to an additional $18.75 million aggregate principal amount of 2033 notes to cover overallotments, if any.

On January 3, 2014, the underwriters exercised the overallotment option with respect to an additional $16.75 million aggregate principal amount of 2033 notes. On January 8, 2014, the exercise of the overallotment option closed and we issued the additional 2033 notes. The issuance resulted in our receipt of total net proceeds of approximately $16.3 million after deducting underwriting fees and adjusting for accrued interim interest. In the aggregate, we issued $141.75 million aggregate principal amount of 2033 notes in the offering and raised total net proceeds of approximately $137.2 million after deducting underwriting fees and offering expenses.

The legal opinion and consent attached as Exhibits 5.1 and 23.1, respectively, to this Current Report on Form 8-K relate to the issuance of 2033 notes in connection with the overallotment option and are incorporated by reference in their entirety into RAIT’s shelf registration statement on Form S-3 (Registration No. 333-175901).

Item 9.01 Financial Statements and Exhibits.

(d) The following exhibits are included with this report:

Exhibit
No. Exhibit Description

5.1 Opinion of Duane Morris LLP

23.1 Consent of Duane Morris LLP (included in Exhibit 5.1).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RAIT Financial Trust
January 10, 2014	By:	/s/ James J. Sebra
		Name: James J. Sebra
		Title: Chief Financial Officer and Treasurer

Exhibit Index

Exhibit No.	Description
5.1	Opinion of Duane Morris LLP (including Exhibit 23.1 Consent of Duane Morris LLP).

EX-5.1

DUANE MORRIS LLP
111 S. Calvert Street, Suite 2000
Baltimore, MD 21202

January 8, 2014

RAIT Financial Trust
Cira Centre, 2929 Arch Street, 17th Floor
Philadelphia, PA 19104

Re: Underwriting Agreement, dated December 4, 2013, between RAIT Financial Trust and Barclays Capital Inc., as Representative of the several Underwriters

Ladies and Gentlemen:

We have acted as your special Maryland counsel for the limited purpose of rendering certain opinions in connection with the sale and issuance of the Securities pursuant to the Underwriting Agreement, dated December 4, 2013, between RAIT Financial Trust (the “Company,” “you,” or “your”) and Barclays Capital Inc., as Representative of the several Underwriters (the “Underwriting Agreement”). Capitalized terms defined in the Underwriting Agreement and used (but not otherwise defined) herein are used herein as so defined. Pursuant to Section 2(b) of the Underwriting Agreement, the Underwriters have elected to partially exercise their option to purchase Option Securities in the aggregate principal amount of $16,750,000. This opinion is being rendered to you for submission to the Commission (as herein defined) as an exhibit to the Registration Statement (as herein defined). In regard to rendering the opinions herein, you should note that we did not participate in any aspect of the drafting or negotiation of any of the Principal Agreements (as herein defined). The Securities will be issued pursuant to a base indenture, dated as of December 10, 2013, by and between the Company and Wells Fargo, National Association, as trustee (the “Trustee”), as supplemented by a supplemental indenture, dated as of December 10, 2013, by and between the Company and the Trustee (the base and supplemental indentures together being, the “Indenture”).

For purposes of rendering this opinion, we have examined originals or copies (certified or otherwise identified to our satisfaction) of:

(a) The Underwriting Agreement;

(b) The Indenture;

(c) The Securities;

(d) The Registration Statement on Form S-3 relating to the Securities (File Number 333-175901), that was declared effective by the Securities and Exchange Commission (the “Commission”) on September 9, 2011 under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder by the Commission, as such registration statement has been amended and supplemented to date (the “Registration Statement);

(e) The Amended and Restated Declaration of Trust, as amended, corrected and supplemented, of the Company (the “Declaration”), certified as of December 3, 2013 by the State Department of Assessments and Taxation of the State of Maryland (the “SDAT”);

(f) The Bylaws of the Company, certified as of the date hereof by the Secretary of the Company (the “Bylaws”)

(g) All resolutions adopted by the Board of Trustees of the Company, or committees thereof, relating to (i) the authorization, execution and delivery of the Underwriting Agreement and Indenture and the transactions contemplated thereby, (ii) the registration, sale and issuance of the Securities in accordance with the Indenture, and (iii) the reservation of the Initial Maximum Conversion Shares;

(h) A certificate of the SDAT as to the good standing of the Company, dated as of January 8, 2014; and

(i) A Certificate of Secretary executed by Raphael Licht, Secretary of the Company, dated as of the date hereof (the “Certificate”).

In such examination, we have assumed: (i) the genuineness of all signatures, (ii) the legal capacity of all natural persons, (iii) the authenticity of all documents submitted to us as originals, (iv) the conformity to original documents of all documents submitted to us as certified, conformed or other copies and the authenticity of the originals of such documents and (v) that all records and other information made available to us by the Company on which we have relied are complete in all material respects. As to all questions of fact material to these opinions, we have relied solely upon the Certificate or comparable documents and upon the representations and warranties contained in the Underwriting Agreement and Indenture and other documents delivered pursuant thereto, and have not performed or had performed any independent research of public records and have assumed that certificates of or other comparable documents from public officials dated prior to the date hereof remain accurate as of the date hereof.

We have also assumed that the Indenture has been duly authorized, executed and delivered by each party thereto other than the Company and constitutes the legal, valid and binding obligations of such parties, enforceable against such parties in accordance with their respective terms.

Based on the foregoing, and subject to the qualifications stated herein, we are of the opinion that:

1. The Company is as a real estate investment trust validly existing and in good standing under the laws of the State of Maryland, and has the trust power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement.

2. The Indenture has been duly authorized, executed and delivered by the Company.

3. The Securities have been duly authorized, executed, issued and delivered by the Company.

The opinions expressed herein are limited to the substantive laws of the State of Maryland, which, in our experience, without having made any special investigation as to the applicability of any specific law, rules or regulation, are normally applicable to transactions of the type contemplated by the Underwriting Agreement (collectively, the “Applicable Laws”). No opinion is expressed as to the effect on the matters covered by this letter of the laws, rules or regulations of (i) the United States of America or (ii) the securities (or as they are known in the vernacular “blue sky”) laws of the State of Maryland, whether in any such case applicable directly or through the Applicable Laws. The opinions expressed herein are subject to the effect of judicial decisions which may permit the introduction of parol evidence to modify the terms or the interpretation of agreements.

The opinions expressed herein are rendered as of the date hereof and are based on existing law, which is subject to change. Where our opinions expressed herein refer to events to occur at a future date, we have assumed that there will have been no changes in the relevant law or facts between the date hereof and such future date. We do not undertake to advise you of any changes in the opinions expressed herein from matters that may hereafter arise or be brought to our attention or to revise or supplement such opinions should the present laws of any jurisdiction be changed by legislative action, judicial decision or otherwise.

Our opinions expressed herein are limited to the matters expressly stated herein and no opinion is implied or may be inferred beyond the matters expressly stated.

The opinions expressed herein are rendered solely for your benefit in connection with your issuance of the Securities. Those opinions may not be used or relied upon by any other person, nor may this letter or any copies hereof be furnished to a third party, filed with a governmental agency, quoted, cited or otherwise referred to without our prior written consent. Notwithstanding the foregoing, we hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of the name of our firm therein under the heading “Legal Matters”. In giving this consent, we do not admit that we are within the category of persons whose consent is required by Section 7 of the Act.

Very truly yours,

/s/ Duane Morris LLP