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RAIT Financial Trust Message Board

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  • ethison ethison Oct 9, 2008 2:04 PM Flag

    mgmt buying up shares a possibility?

    RAS needs only 120 million to retire 400 million in debt that is due in 2012. WOW.

    Only two problems.

    1. RAS lacks 120 million dollars.

    2. The buyback at the prices you are suggesting would create a 280 million gain, which RAS would need to pay out 90% of to shareholders as a dividend. That dividend would, of course, require even more cash, unless you are saying that you are aware of 280 million in losses they have to recognize elsewhere. Do they?

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    • 2012 is a long way off, and as of the end of 2Q, they had half the money they needed to buy back all the debt. I certainly hope they didn't use it all, but there is a substantial income stream coming into RAS. As we've already discussed, we know there are losses. I don't know if there are $140M, but I wouldn't be surprised if there are.

      And I certainly know a way to create one, if need be, in December.

      Personally, I'd prefer the special dividend.

      We'll see what happens.

      • 1 Reply to davisfoulger
      • Davis,

        Help me out here. I just looked at the 10Q BS @ 6/30 it says RAS has $47,106,000 of cash and $59,183,000 of repo debt. Just what does that mean?

        I guess RAS can buy back close to $140,000,000 of the 2012 debt with the cash they have.

        But don't we need that cash to pay the 42 cent dividend? The dividend will use up $24MM of cash, right?

 
RAS
7.83+0.45(+6.10%)Dec 19 4:08 PMEST

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