Ready Capital Corp Stock Price, News & Analysis

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.

Ready Capital (NYSE: RC) has scheduled the release of its fourth quarter and full year 2024 financial results before the NYSE opens on Monday, March 3, 2025. The company will host a webcast and conference call at 8:30 a.m. Eastern Time on the same day to discuss the financial results and provide a business update.

The webcast will be accessible through the Investor Relations section of Ready Capital's website. A conference call option is available by dialing 877-407-0792 (domestic) or 201-689-8263 (international). A replay will be available until March 17, 2025, accessible via the website or by dialing 844-512-2921 (domestic) or 412-317-6671 (international) with pin number 13750356.

Ready Capital (NYSE: RC) has announced a new stock repurchase program authorized by its Board of Directors. The program allows for the repurchase of up to $150.0 million of the company's common stock. As a multi-strategy real estate finance company, Ready Capital focuses on originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans.

The repurchases can be executed through various channels, including open market, privately negotiated transactions, and under Rule 10b5-1 and Rule 10b-18 plans. Management will determine the timing and volume of repurchases based on market conditions, share price, legal requirements, and other factors.

Ready Capital (NYSE:RC) has announced its fourth quarter 2024 dividend declarations. The company will pay a quarterly cash dividend of $0.25 per share of common stock and Operating Partnership unit for Q4 2024, payable on January 31, 2025, to shareholders of record as of December 31, 2024.

Additionally, the company declared dividends on its preferred stocks: $0.390625 per share for Series C Preferred Stock and $0.40625 per share for Series E Preferred Stock, both payable in January 2025. 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.

NexPoint has issued a statement criticizing United Development Funding IV (UDF IV)'s decision not to reconvene its 2024 Annual Meeting of Shareholders due to lack of quorum. NexPoint expresses deep concerns about UDF IV's governance and its handling of the proposed Ready Capital acquisition. The company calls for UDF IV to reconvene the meeting within 120 days, but only after providing complete disclosure of the Ready Capital transaction details.

Independent proxy advisory firm Glass Lewis shares NexPoint's concerns about disclosure deficiencies and transaction timing. NexPoint believes the Annual Meeting vote was closer than reported, indicating significant shareholder dissatisfaction. The company criticizes UDF IV for suppressing shareholder engagement and spending substantial shareholder funds on legal and PR efforts while avoiding accountability.

Ready Capital (NYSE: RC) has successfully closed an underwritten public offering of $130 million aggregate principal amount of 9.00% Senior Notes due 2029, which includes $15 million from a partial exercise of the underwriters' over-allotment option. The Notes were issued in denominations of $25.00 and will be listed on the NYSE under the symbol 'RCD' within 30 days of closing.

The company plans to use the net proceeds to originate or acquire target assets aligned with its investment strategy and for general corporate purposes. The offering was managed by Morgan Stanley, Piper Sandler, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities as book-running managers.