Ready Capital Corporation Announces Closing of $220.0 Million of Senior Secured Notes
Rhea-AI Summary
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.
Positive
- Secured $220.0 million in new financing
- First-priority lien security structure enhances debt quality
- Debt proceeds will help restructure existing indebtedness
Negative
- High interest rate of 9.375% on the notes
- Adds significant secured debt to balance sheet
News Market Reaction – RC
In the trading session that priced this news, RC gained 1.94%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) today announced that on February 21, 2025, ReadyCap Holdings, LLC (“ReadyCap”), an indirect subsidiary of the Company closed a private placement of
The Company intends to use the net proceeds from the private placement to repay its indebtedness and for general corporate purposes.
Piper Sandler & Co. acted as the placement agent for the offering. Alston & Bird LLP served as counsel for the Company, and Ropes & Gray LLP served as counsel for the placement agent.
The Notes and the Guarantees will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, or any state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company’s securities, nor shall there be any sale of the Company’s securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 500 professionals nationwide. The Company is externally managed and advised by Waterfall Asset Management, LLC.
Forward-Looking Statements
This press release contains certain forward-looking statements. Words such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “could,” “would,” “may,” “potential” or the negative of those terms or other comparable terminology are intended to identify forward-looking statements. These forward-looking statements include statements relating to, among other things, the expected use of the net proceeds from the private placement. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of the Company, including, without limitation, the risk factors and other matters set forth in the Company’s Annual Report on Form 10–K for the year ended December 31, 2023 filed with the SEC and in its other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Contacts:
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
