RAIT Reaches Deal With Highland Capital On Board Of Trustees Appointment

(RTTNews) - RAIT Financial Trust (RAS) said that it has entered into a cooperation agreement with Highland Capital Management L.P. and its affiliates, which, in the aggregate, beneficially own about 5.9% of RAIT's outstanding common shares.

As per the terms of the cooperation agreement, RAIT has agreed that, following the certification of the vote at its 2017 Annual Meeting of Shareholders, it will appoint to its Board of Trustees a new trustee who will be one of two candidates recommended by Highland Capital. In addition, RAIT has agreed that within 120 days from the date of the cooperation agreement, it will appoint an additional new trustee to its Board.

As per the terms of the cooperation agreement, Highland Capital and its affiliates have agreed to vote their shares in support of, among other things, the election of the slate of trustees recommended by RAIT's Board at the 2017 annual meeting and to abide by certain other voting and customary standstill provisions.

The complete cooperation agreement between RAIT and Highland Capital and its affiliates will be filed as an exhibit to a Current Report on Form 8-K with the Securities and Exchange Commission.

UBS Investment Bank served as financial advisor to RAIT. Morgan, Lewis & Bockius LLP served as legal counsel to RAIT and its Board of Trustees. FTI Consulting, Inc. served as investor relations advisor to RAIT.