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RAIT Financial Trust to reimburse activist investors $250,000


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RAIT Financial Trust to reimburse activist investors $250,000

RAIT Financial Trust has agreed to pay Highland Capital Management LP and a group of affiliate investors $250,000 as part of a previously announced cooperation agreement.

The payment, which is related to the group's efforts surrounding the 2017 annual meeting, comes as the company and group agreed to end an ongoing battle over the company's board and the management of NexPoint Real Estate.

The company agreed to appoint either Nancy Jo Kuenstner or Andrew Richardson as a trustee, serving until the 2018 annual shareholders meeting. The board will also appoint a new trustee not affiliated or associated with the group to serve until the 2018 annual meeting. The investor group was given one veto to use on the second trustee.

Additionally, the company will schedule a call with a representative from the investor group to discuss any public news the company has disclosed. The call will take place once every 60 days until the 2018 annual meeting.

In return, the group agreed to end its pending proxy contest against RAIT Financial and withdraw its nomination proposing the election of five candidates for the company's board of trustees at its 2017 annual shareholder meeting. In April, the company's board said the nominations do no comply with the company's bylaws.

The investor group includes Highland Global Allocation Fund, Highland Small-Cap Equity Fund, Highland Capital Management Fund Advisors LP, Strand Advisors XVI Inc., NexPoint Real Estate Strategies Fund, NexPoint Advisors LP, NexPoint Advisors GP LP, Highland Select Equity Fund GP LP, Highland Select Equity Master Fund LP, Highland Select Equity GP LLC, Strand Advisors Inc., HCRE Partners LLC, NexPoint Real Estate Advisors LP, NexPoint Real Estate Advisors GP LLC, James Dondero, Matt McGraner and Edward Friedman.