NEW YORK, NY -- (Marketwired) -- 08/04/15 -- Resource Capital Corp. (NYSE: RSO) (the "Company") announced today that its Board of Directors has approved a one-for-four reverse stock split of the Company's common stock.
The reverse stock split is expected to take place after the market close on August 31, 2015 (the "Effective Date"). On the Effective Date, every four issued and outstanding shares of Company common stock will be converted into one share of Company common stock, and the number of authorized shares of Company common stock will also be reduced on a one-for-four basis. Trading in the Company's common stock on a split adjusted basis is expected to begin at the market open on September 1, 2015. The Company's common stock will continue trading on the NYSE under the symbol "RSO" but will be assigned a new CUSIP number. The Company believes that existing stockholders will benefit from the ability to attract a broader range of investors as a result of the reverse stock split and a higher per share stock price.
As a result of the reverse stock split, the number of outstanding shares of Company common stock will be reduced from approximately 134,000,000 to approximately 33,500,000. The reverse stock split will not affect any stockholder's ownership percentage of the Company's common stock (except for de minimus changes as a result of the elimination of fractional shares).
No fractional shares will be issued in connection with the reverse stock split. Instead, each stockholder holding fractional shares will be entitled to receive, in lieu of such fractional shares, cash in an amount based on the closing price of the Company's common stock on the Effective Date. The reverse stock split will apply to all of the Company's authorized and outstanding shares of common stock as of the Effective Date. Stockholders of record will be receiving information from American Stock Transfer & Trust Company, the Company's transfer agent and the exchange agent for the reverse stock split, regarding their stock ownership following the reverse stock split and cash payments in lieu of fractional shares, if applicable. Stockholders who hold their shares in brokerage accounts or in "street name" are not required to take any action in connection with the reverse stock split.
RSO is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt and equity investments. The Company is also active in commercial finance, including through Northport Capital, its middle market lending platform. The Company is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), an asset management company that specializes in real estate and credit investments.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "trend", "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by Resource Capital Corp. from time to time with the Securities and Exchange Commission. Resource Capital Corp. undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.
Source: Resource Capital Corp.