Resource Capital (NYSE:XAN) has begun a 16.25 million-share common stock issue in an underwritten public flotation. Additionally, it intends to grant those underwriters a 30-day purchase option for up to an additional 2.44 million shares.
In the press release announcing the move, the REIT said it plans to use the proceeds of the issue for "general corporate purposes." It did not elaborate on what those might be.
It also did not specify a price or range for the issue. Resource Capital's most recent closing stock price was $6.53.
The two joint book-running managers for the offering are Deutsche Bank's Securities unit, and JPMorgan Chase's near-namesake investment banking subsidiary J.P. Morgan.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.