Ready Capital Corporation Prices $225 Million of Senior Secured Notes Due 2031 and Announces Redemption of $350 Million of Notes Due 2026

Ready Capital refinances near-term 2026 notes with longer-dated 2031 debt while reducing overall corporate secured borrowings and completing its balance sheet plan.

Rhea-AI Summary

Ready Capital (RC) has priced $225 million of 10.00% Senior Secured Notes due 2031 and plans to redeem $350 million of 4.50% notes due 2026. The new notes, issued by subsidiary ReadyCap Holdings II, LLC, were priced at 99.5% of principal and are expected to close on September 28, 2026. Net proceeds, together with available cash, will redeem the 2026 notes at 100% of principal plus accrued and unpaid interest. The transaction retires $350 million of 2026 corporate debt, funds about two-thirds of that repayment with capital maturing in 2031, and reduces corporate secured debt outstanding by $125 million. Over its balance sheet repositioning plan launched in late 2025, the company will have generated about $2.3 billion of cash, repaid $1.7 billion of asset-level financing, and retired $549 million of corporate debt. After this redemption, only $100 million of 2026 corporate debt will remain, which the company expects to repay from cash on hand, shifting its focus from liquidity to earnings growth.

Positive

• $225 million of new Senior Secured Notes due 2031 extends a portion of debt maturities
• Redemption retires $350 million of 4.50% Senior Secured Notes due 2026
• Corporate secured debt outstanding expected to fall by $125 million after the transaction
• Balance sheet plan to have generated about $2.3 billion of cash
• Plan includes repayment of $1.7 billion of asset-level financing
• Plan includes retirement of approximately $549 million of corporate debt
• Only $100 million of 2026 corporate debt will remain, expected to be repaid from cash on hand

Negative

• New notes carry a 10.00% coupon, replacing redeemed notes with a 4.50% coupon, increasing interest rate on this portion of debt

Market Context

The $1.4 billion of year-to-date cash generation reported on Aug 6 accompanied $184 million of corpo...

Analysis

The $1.4 billion of year-to-date cash generation reported on Aug 6 accompanied $184 million of corporate-debt retirement, providing a disclosed deleveraging precedent relevant to today's $350 million notes redemption.

Key Figures

New notes principal: $225.0 million New notes interest rate: 10.00% New notes issue price: 99.5% of principal amount +5 more

New notes principal

$225.0 million

Senior secured notes due 2031

New notes interest rate

10.00%

Senior secured notes due 2031

New notes issue price

99.5% of principal amount

Private placement

Existing notes redemption

$350.0 million

4.50% senior secured notes due 2026

Redemption price

100% of principal amount plus accrued and unpaid interest

Existing notes

Corporate secured debt reduction

$125 million

Following the transaction

Remaining 2026 corporate debt maturity

$100.0 million

Due in November 2026

Expected closing date

September 28, 2026

New notes transaction

Historical Context

1 past event · Latest: Aug 06

1 event

1. Aug 06

   Q2 earnings report

   24h Move

   +10.3%

   Reported cash generation, financing paydowns, and corporate debt retirement supporting balance-sheet deleveraging.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured notes, private placement, asset-level financing, placement agent

4 terms

senior secured notes financial

"10.00% Senior Secured Notes due 2031"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

private placement financial

"priced a private placement of $225.0 million"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

asset-level financing financial

"repaid $1.7 billion of asset-level financing"

A financing arrangement where the loan or credit is secured by a specific tangible or financial asset—such as a building, a fleet of vehicles, or a pool of loans—rather than by a company’s overall credit. It matters to investors because the lender’s repayment depends primarily on the value and cash flow of that particular asset, so risk and recovery are more tied to the asset’s performance; think of it like borrowing against a single house rather than the whole household’s income.

placement agent financial

"Piper Sandler & Co. acted as the placement agent"

A placement agent is a professional or firm that helps organizations raise money from investors, such as individuals, institutions, or funds. They act like matchmakers, connecting those seeking investments with the right investors and guiding the process to ensure successful funding. For investors, they can provide access to exclusive opportunities and help navigate complex fundraising efforts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Sept. 18, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation ("Ready Capital" or the "Company") (NYSE: RC) today announced that its subsidiary, ReadyCap Holdings II, LLC (the "Issuer"), has priced a private placement of $225.0 million in aggregate principal amount of 10.00% Senior Secured Notes due 2031 (the "New Notes"). Additionally, ReadyCap Holdings, LLC ("RCH"), a subsidiary of the Company, issued a notice of redemption for the entire $350.0 million outstanding aggregate principal amount of the 4.50% Senior Secured Notes due 2026 (the "Existing Notes").

The New Notes were priced at 99.5% of principal amount and are expected to close on September 28, 2026. Net proceeds, together with available cash, will be used to redeem the Existing Notes in full at 100% of principal amount plus accrued and unpaid interest. The transaction retires $350.0 million of corporate debt maturing this year, funds approximately two-thirds of that repayment with new capital maturing in 2031 and reduces corporate secured debt outstanding by $125 million.

The redemption of the Existing Notes will complete a material milestone of the Company’s balance sheet repositioning program announced in the fourth quarter of 2025. Over the course of the plan, Ready Capital will have generated approximately $2.3 billion of cash; repaid $1.7 billion of asset-level financing; and retired $549 million of corporate debt. Following the redemption of the Existing Notes, the Company’s sole remaining 2026 corporate debt maturity will be $100.0 million due in November 2026, which the Company expects to repay at maturity from cash on hand.

The Company expects to shift its emphasis from liquidity generation to earnings growth. It intends to deploy capital into current market-yielding originations across its core commercial real estate debt and small business lending platforms.

"In the fourth quarter of 2025, we embarked on a plan to de-lever, generate significant liquidity and reset the balance sheet, and with the $350 million redemption that work is substantially complete," said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. "This execution demonstrates that investors continue to underwrite the quality of our collateral and the credibility of our business plan. From here our emphasis moves from managing liquidity to growing earnings behind our core CRE and SBA franchises."

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.

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. Headquartered in New York, New York, the Company employs over 400 professionals nationwide.

No Offer or Solicitation

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, nor does it constitute a notice of redemption of the Existing Notes. The New Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (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 registration requirements. The New Notes were offered and will be sold in a private placement in reliance on Section 4(a)(2) of the Securities Act to a limited number of institutional accredited investors as defined in Rule 501(a) of Regulation D. Any redemption of the Existing Notes will be made solely pursuant to the applicable notice of redemption and governing documents.

Safe Harbor Statement

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. These statements include, without limitation, statements regarding the expected closing of the New Notes offering, the intended redemption of the Existing Notes and the timing thereof, the expected repayment of the Company's November 2026 corporate debt maturity, the completion of the Company's balance sheet repositioning plan, and the Company's expectations regarding future leverage, originations and earnings. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company's investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of the Company's assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact

Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com 
Additional information can be found on the Company’s website at www.readycapital.com. 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How will Ready Capital use the proceeds from the new 2031 Senior Secured Notes?

Net proceeds from the $225.0 million 10.00% Senior Secured Notes due 2031, together with available cash, will be used to redeem in full the $350.0 million outstanding 4.50% Senior Secured Notes due 2026 at 100% of principal amount plus accrued and unpaid interest.

What does this transaction change in Ready Capital’s 2026 debt maturities?

The redemption of the $350.0 million 4.50% Senior Secured Notes due 2026 will leave only one remaining 2026 corporate debt maturity: $100.0 million due in November 2026, which the company expects to repay at maturity from cash on hand.

What has Ready Capital’s balance sheet repositioning program achieved overall?

Over the course of the balance sheet repositioning plan announced in the fourth quarter of 2025, Ready Capital will have generated approximately $2.3 billion of cash, repaid $1.7 billion of asset-level financing, and retired $549 million of corporate debt. The redemption of the existing notes is described as completing a material milestone of this program.

How does Ready Capital describe its strategic focus after this debt redemption?

The company expects to shift its emphasis from liquidity generation to earnings growth. It intends to deploy capital into current market-yielding originations across its core commercial real estate debt and small business lending platforms, including its CRE and SBA franchises.

Who was involved in arranging and advising on the new notes offering?

Piper Sandler & Co. acted as the placement agent for the private offering of the new Senior Secured Notes. Alston & Bird LLP served as counsel for Ready Capital, and Ropes & Gray LLP served as counsel for the placement agent.