Benefit Street Partners Realty Trust Enters Stock Purchase Agreement
November 27, 2019
Benefit Street Partners Realty Trust, Inc. entered into a stock purchase agreement with an institutional investor on November 20.
Under the agreement, the investor committed to purchase $2 million of shares of the company’s Series C convertible preferred stock in a transaction that is expected to close December 6. It provides that the purchase price for the shares shall be equal to $5,000 per share plus accrued dividends. The terms of the purchase agreement are similar to those of previous agreements pursuant to which the Company has sold shares of its Series A Convertible preferred stock. On September 11, 2019, the Company’s board of directors approved the Company’s entry into a $5.0 million binding purchase commitment with an institutional investor for the new series of Series C convertible preferred stock. Dividends payable on each share of Class C Preferred Stock will be equal to the greater of (i) an amount equal to $16.67 per share and (ii) the monthly dividend that would have been paid had such share of Preferred Stock been converted to a share of Common Stock, subject to proration in the event that such share of Preferred Stock was not outstanding for the full month. The $16.67 monthly dividend represents a 4.0% yield based upon the $5,000 share price.
The company plans to use the net proceeds to originate and acquire additional commercial real estate debt investments and for working capital and other general corporate purposes.
As of September 30, 2019, the Company had issued 38,501 shares of Series A redeemable convertible preferred stock with a book value of $192.1 million. Subsequent to September 30, 2019, the Company issued $8.2 million of common stock at $16.71 per share and $5.0 million of Series C Preferred Stock at $5,000 per share.
Shares of Series A Preferred Stock rank senior to shares of Common Stock with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Dividends payable on each share of Series A Preferred Stock will be equal to the greater of (i) an amount equal to $16.67 per share and (ii) the monthly dividend that would have been paid had such share of Series A Preferred Stock been converted to a share of Common Stock, subject to proration in the event that such share of Series A Preferred Stock was not outstanding for the full month. The $16.67 monthly dividend represents a 4.0% yield based upon the $5,000 share price.
Source: SEC
