Ready Capital Corporation Announces Closing of Public Offering of Senior Notes Due 2029 and Partial Exercise of Over-allotment Option
Rhea-AI Summary
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.
Positive
- Successfully raised $130 million through senior notes offering
- 9.00% interest rate indicates strong investor demand
- NYSE listing approval for notes under RCD symbol
- Additional $15 million raised through partial over-allotment exercise
Negative
- High 9.00% interest rate represents significant debt servicing cost
- Increased debt burden on company's balance sheet
- Potential dilution of equity value through debt issuance
News Market Reaction – RC
On the day this news was published, RC declined 2.95%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) today announced that it closed an underwritten public offering of
The Notes have been approved for listing on the New York Stock Exchange under the symbol “RCD” and trading is expected to commence within 30 days of the closing of the offering.
A registration statement relating to the securities was filed with the Securities and Exchange Commission (the “SEC”) and immediately became effective on March 22, 2022. The offering was made only by means of a prospectus supplement and accompanying prospectus, which have been filed with the SEC. A copy of the prospectus supplement and accompanying prospectus may be obtained free of charge at the SEC’s website at www.sec.gov or from the underwriters by contacting: Morgan Stanley & Co. LLC by calling 1-800-584-6837, Piper Sandler & Co. at 1251 Avenue of the Americas, 6th Floor, New York, NY 10020, or by calling toll-free 866-805-4128, or by email at fsg-dcm@psc.com, RBC Capital Markets, LLC by calling 1-866-375-6829 or by emailing rbcnyfixedincomeprospectus@rbccm.com, UBS Investment Bank by calling 1-888-827-7275, Wells Fargo Securities, LLC by calling 1-800-645-3751 or by emailing wfscustomerservice@wellsfargo.com.
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. Ready Capital 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. Headquartered in New York, New York, Ready Capital employs approximately 350 professionals nationwide. Ready Capital 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 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 prospectus supplement and the accompanying prospectus and 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
FAQ
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