Ready Capital Corp Stock Price, News & Analysis

Ready Capital Corporation (NYSE: RC) has scheduled the release of its first quarter 2025 financial results after market close on Thursday, May 8, 2025. The company will host a webcast and conference call on Friday, May 9, 2025 at 8:30 a.m. Eastern Time to discuss the quarterly results and provide a business update.

Investors can access the webcast through Ready Capital's website Investor Relations section. For dial-in access, participants can call 877-407-0792 (domestic) or 201-689-8263 (international). A replay will be available until May 23, 2025, accessible via website or by calling 844-512-2921 (domestic) or 412-317-6671 (international) with pin 13750797.

iBusiness Funding (iBF), a division of Ready Capital (NYSE: RC), has launched Lendsey AI, the first agentic AI platform for SMB lending, alongside a $100 million commitment for AI advancement. The platform integrates with iBF's LenderAI Loan Origination System, processing over $100 million in SBA and conventional loans monthly.

Lendsey AI operates as a dual-facing solution, serving both borrowers and lenders with instant feedback and automated execution capabilities. The system includes proprietary tools for telephony, email, OCR, chat, document generation, and e-signing, enabling autonomous communication and execution.

iBF's unique advantage lies in leveraging data from its own lending operations, having field-tested solutions on over $11 billion in loans. The $100 million commitment will be internally financed through operating revenue, demonstrating the company's confidence in AI-driven lending.

Waterfall Asset Management has appointed Keerthi Raghavan as Co-Chief Investment Officer (Co-CIO), where he will work alongside current Co-CIO Brian Rebello to oversee all investment activities. Raghavan, who joined the firm in 2014, currently serves as Partner and Head of ABS Strategy and is a member of the Investment Committee.

The appointment follows the resignation of Patrick Lo, Partner and Co-CIO, after 19 years with the firm. Raghavan brings over 16 years of industry experience, including his previous role as Director for CMBS Credit Trading and Head of CMBS Research at Barclays Capital. His co-lead, Rebello, has been with Waterfall since 2010 and possesses over 25 years of industry experience.

Ready Capital (NYSE: RC) has completed its previously announced acquisition of United Development Funding IV (UDF IV). Under the merger terms, each UDF IV share was converted into 0.416 shares of Ready Capital common stock and 0.416 contingent value rights (CVRs).

The CVRs represent potential additional Ready Capital shares based on cash proceeds from five UDF IV loans over four periods: October 1, 2024 to December 31, 2025, and three subsequent calendar years. The combined entity continues to operate as Ready Capital and maintains its NYSE listing under 'RC'.

Ready Capital is a multi-strategy real estate finance company focusing on lower-to-middle-market commercial real estate loans, including agency multifamily, investor, construction, bridge, and SBA Section 7(a) loans. The company employs approximately 350 professionals nationwide.

NexPoint has issued an urgent update regarding the proposed merger between United Development Funding IV (UDF IV) and Ready Capital (RC), scheduled for shareholder vote on March 4, 2025. Following Ready Capital's concerning Q4 2024 earnings report, RC's stock price plummeted by over 25%, trading as low as $4.78 per share, which translates to $1.99 per UDF IV share under the merger terms.

The steep decline could potentially erase more than $30 million in value for UDF IV shareholders. NexPoint criticizes the UDF IV Board's hasty rejection of their competing proposal on February 28, 2025, and urges the Board to postpone the Special Meeting by one month to properly evaluate both transactions and Ready Capital's financial stability.

Ready Capital (NYSE: RC) reported challenging Q4 2024 results with a GAAP loss per share of $(1.80) and distributable loss per share of $(0.03). The company declared a reduced quarterly dividend of $0.125 per share for Q1 2025.

Key Q4 highlights include $436 million in LMM commercial real estate originations and $348 million in Small Business Lending originations. Book value stood at $10.61 per share. The company repurchased 5.8 million shares at an average price of $7.35.

For full-year 2024, Ready Capital posted a GAAP loss of $(2.52) per share and achieved total LMM and SBL originations of $2.4 billion. The company has taken strategic actions including fully reserving non-performing CRE loans and adjusting dividends to preserve capital for reinvestment and share repurchases.

Subsequently, the Board approved a new $150 million stock repurchase program, and the company closed a $220 million private placement of 9.375% Senior Secured Notes due 2028.

NexPoint has submitted a competing proposal to UDF IV's Board of Trustees, challenging the planned merger with Ready Capital (RC). The proposal offers improved shareholder economics compared to the Ready Merger scheduled for March 4, 2025.

Key advantages of NexPoint's proposal include:

• Higher pre-closing dividend through enhanced balance sheet distributions
• 100% shareholder entitlement to CVR loan proceeds (vs. Ready's complex structure with shareholder benefits)
• Intent to recover improper indemnification payments with 100% of net recoveries going to shareholders

NexPoint, a major shareholder, will not vote at the March 4 Special Meeting and urges a one-month postponement for proper proposal evaluation. The company calls for shareholders to withhold voting until the UDF IV Board fully assesses their proposal.

Ready Capital (NYSE: RC) announced the closing of a private placement of $220.0 million in aggregate principal amount of 9.375% Senior Secured Notes due 2028 through its indirect subsidiary ReadyCap Holdings, on February 21, 2025.

The Notes are senior secured obligations backed by first-priority liens on specific assets and guaranteed by Ready Capital and several subsidiary entities. The company plans to use the net proceeds to repay existing debt and for general corporate purposes.

Piper Sandler & Co. served as the placement agent, with Alston & Bird LLP and Ropes & Gray LLP providing legal counsel. The Notes and Guarantees are not registered under the Securities Act and cannot be offered or sold in the US without registration or applicable exemption.

NexPoint Real Estate Opportunities announced plans to submit a competing proposal against the proposed merger between United Development Funding IV (UDF IV) and Ready Capital (RC). NexPoint is urging UDF IV's Board to postpone the March 4, 2025 Special Meeting by 30 days to April 4, 2025, allowing proper review of competing proposals while maintaining the April 15 merger deadline.

NexPoint expressed significant concerns about the Ready Merger, citing questionable shareholder economics and disproportionate benefits to UDF IV insiders. The current deal structure would have UDF IV shareholders receive considerable RC stock, which has experienced declining operating cash flow and distribution cuts. The merger agreement includes extensive indemnification provisions that could limit shareholders' ability to seek repayment of misused funds.

NexPoint is deferring its vote and encourages shareholders to withhold or withdraw their votes to compel the Board to properly review any competing proposals.