GRAND RAPIDS, Mich., Oct. 1, 2019 /PRNewswire/ -- Red Oak Capital Group (RED OAK) announced today that its latest $50,000,000 bond offering, Red Oak Capital Fund III has been fully qualified by the SEC and is now open and receiving subscriptions.
"There has been great interest and demand from the market, so we are excited to get this latest offering released," said Chip Cummings, CEO of Red Oak.
Similar to Fund II which reached capacity in August, the $50 million Regulation A+ Tier II bond offering offers two options for investors, the Series A bond with a coupon of 6.50% (which matures on December 31, 2022), and the Series B bond with a coupon of 8.50% (which matures on December 31, 2025). Both options include an additional contingent interest payment at the end of the term which increases the yield to the investor.
"This is a great fixed income, alternative investment product," added Cummings. "As a general solicitation bond offering, it is attractive to both accredited and non-accredited investors – as well as qualified money such as IRA's and pensions."
The issued bonds are securitized by senior secured commercial mortgage notes, backed by existing income producing commercial real estate properties located in the U.S. As an institutional quality short-term commercial real estate lender, Red Oak Capital takes advantage of short-term gaps in the traditional commercial finance markets, and specializes in lending on these smaller commercial real estate debt instruments. Strong growth and demand for redevelopment capital in the commercial real estate sector has led to rapid expansion for private equity firms like Red Oak.
Red Oak's last offering, Red Oak Capital Fund II, also turned out to be very popular in the market – selling out nearly two months ahead of schedule. The terms and structure of the new bond offering are almost identical, except that Red Oak has lowered the overall expenses.
Established by the SEC in 2015 under the JOBS Act, the Regulation A+ Tier II offerings allows companies to sell up to $50 million in securities within a 12-month period. In addition, it requires regular financial filings and annual audited financial statements, which creates greater transparency for investors.
Crescent Securities in Dallas serves as the managing broker dealer for the offering. The national firm of UHY is the auditing firm, and the securities firm of Kaplan Voekler Cunningham & Frank acts as counsel.
Complete offering details can be found at the SEC's website at:
About Red Oak Capital Group
Red Oak Capital Group is a Fintech private equity firm specializing in commercial real estate investments, and manages several different investment funds. Red Oak Capital Group was founded in 2015 to serve the capital finance and investment markets, and has vast experience in the development, management, financing and syndication of commercial real estate. Additional information may be obtained by visiting www.RedOakCapitalGroup.com, or by calling (866) 854-3900.
SOURCE Red Oak Capital Group