Charter Mac Raises $61.5 Million

Charter Mac has raised approximately $61.5 million from an offering of 3.327916 million convertible Community Reinvestment Act preferred shares at $18.48 each to thirteen financial institutions.The transaction, which is expected to close on August 26, is the company's largest offering so far of its CRA preferred shares, the New York-based multifamily finance company reports. The company expects to use the net proceeds from the offering of approximately $58.7 million primarily to acquire additional tax-exempt revenue bonds backed by mortgage loans on multifamily properties. The investors in these CRA preferred shares receive credit under the Community Reinvestment Act "investment test," Charter Mac said. Stuart Boesky, president and CEO, Charter Mac, said that this is Charter Mac's fifth offering of CRA preferred securities and the largest since they introduced the security in 2000. And John Boc, chairman, Meridian Investments, the placement agent on the offering, said that there have been "several repeat investors in the (Charter Mac) CRA preferred shares."