Certain institutional investors committed to buy $97 million of Benefit Street Partners Realty Trust Inc. common shares in one or more closings, pursuant to purchase agreements with the company.
The company may enter into additional purchase agreements with other investors within 12 months after Feb. 14, the commitment date.
Under the agreements, the purchase price for the shares shall be equal to 90% of GAAP book value per common share as of Dec. 31, 2017. However, in consideration of them being the first investors to commit to purchase shares in the offering, the company agreed to sell the shares to the investors at 88% of book value. If subsequent investors in the offering are permitted to acquire common shares for less than 90% of book value, the effective purchase price of the investors will be reduced.
Benefit Street Partners Realty Trust intends to use the net proceeds from the closings to originate and acquire additional commercial real estate debt investments for the company, as well as for working capital and other general corporate purposes.