Adamas Trust (ADAM) sells $90M 9.600% senior notes due 2031 at par
Rhea-AI Filing Summary
Adamas Trust, Inc. completed a public offering of $90 million aggregate principal amount of 9.600% Senior Notes due 2031 under its shelf registration. The Notes were issued at 100% of principal and sold to a syndicate of underwriters led by Morgan Stanley & Co. LLC and others, who also received a 30‑day option to buy up to an additional $13.5 million principal amount to cover over‑allotments.
The Notes pay cash interest at 9.600% per year, payable quarterly in arrears on January 1, April 1, July 1 and October 1, beginning October 1, 2026, and are expected to mature on October 1, 2031, unless earlier redeemed. The company may redeem them, in whole or in part, at par plus accrued and unpaid interest on or after October 1, 2028, with 30–60 days’ prior written notice. The Notes are senior unsecured obligations, ranking equal with Adamas Trust’s other unsecured, unsubordinated senior notes and effectively and structurally subordinated as described in the indenture. Net proceeds are expected to be about $86.6 million, to be used for general corporate purposes, including acquiring targeted assets and/or repaying existing indebtedness.
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8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Senior Notes Issued: $90 million aggregate principal amount
Coupon Rate: 9.600% per year
Net Proceeds: $86.6 million
+4 more
7 metrics
Senior Notes Issued
$90 million aggregate principal amount
9.600% Senior Notes due 2031 issued in public offering
Coupon Rate
9.600% per year
Cash interest on Senior Notes, payable quarterly in arrears
Net Proceeds
$86.6 million
Expected net proceeds after underwriting discounts and expenses
Over-allotment Option
$13.5 million
Additional aggregate principal amount under 30-day underwriters’ option
Maturity Date
October 1, 2031
Expected maturity of 9.600% Senior Notes
First Interest Payment
October 1, 2026
Initial quarterly interest payment date on the Senior Notes
First Optional Redemption Date
October 1, 2028
Earliest date company may redeem Notes at 100% of principal
Key Terms
senior unsecured obligations, Indenture, over-allotments, cumulative redeemable preferred stock, +1 more
5 terms
senior unsecured obligations financial
"The Notes are senior unsecured obligations of the Company that rank senior in right of payment"
Senior unsecured obligations are loans or bonds that a company promises to pay back with its own money, but without any special guarantees or collateral. If the company runs into financial trouble, these debts are paid after other debts with priority, meaning they are less protected but still important. They matter because they show how risky it is to lend money to a company.
Indenture financial
"The Notes were issued under the indenture, dated January 23, 2017 (the “Base Indenture”)"
An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.
over-allotments financial
"30-day option to purchase up to an additional $13.5 million aggregate principal amount of the Notes to cover over-allotments"
An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.
cumulative redeemable preferred stock financial
"Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share"
Cumulative redeemable preferred stock is a type of investment that gives shareholders priority over common stockholders to receive dividends and get their money back if the company is sold or closes. If the company misses dividend payments, it must pay them later before any dividends can go to other shareholders. This makes it a more secure and flexible option for investors seeking steady income with some ability to redeem their shares in the future.
structurally subordinated financial
"and structurally subordinated to all existing and future indebtedness and other liabilities"
A claim or security is structurally subordinated when it sits lower in the legal repayment order because it is issued by a subsidiary rather than the parent company, so its holders are paid only after the parent’s creditors and any creditors of the subsidiary’s parent entities are satisfied. Imagine a line for repayment: structurally subordinated investors stand further back in line, which affects the likelihood and amount they might recover if the company or group faces financial trouble. This matters to investors because it usually implies higher risk and can influence expected return, liquidity, and credit pricing.
FAQ
What did Adamas Trust (ADAM) announce regarding new senior notes?
Adamas Trust completed a public offering of $90 million aggregate principal amount of 9.600% Senior Notes due 2031. The Notes were issued at 100% of principal under an effective shelf registration and sold to a syndicate of underwriters.
What interest rate and payment schedule apply to Adamas Trust (ADAM) 9.600% Senior Notes?
The Notes bear interest at 9.600% per year, payable in cash quarterly in arrears. Payments are due on January 1, April 1, July 1 and October 1 each year, beginning on October 1, 2026, until maturity or earlier redemption.
When do Adamas Trust (ADAM) 9.600% Senior Notes mature and when can they be redeemed?
The Notes are expected to mature on October 1, 2031. Adamas Trust may redeem them, in whole or in part, at its option on or after October 1, 2028 at 100% of principal plus accrued and unpaid interest, with 30–60 days’ written notice.
How much will Adamas Trust (ADAM) receive in net proceeds from the senior notes offering?
Net proceeds are expected to be approximately $86.6 million after deducting underwriting discounts, commissions and estimated offering expenses. The company plans to use these funds for general corporate purposes, including acquiring targeted assets and/or repaying existing indebtedness.
What is the ranking of Adamas Trust (ADAM) 9.600% Senior Notes within its capital structure?
The Notes are senior unsecured obligations of Adamas Trust. They rank senior to future expressly subordinated debt, equal to other unsecured unsubordinated debt, effectively subordinated to secured debt to the extent of collateral value, and structurally subordinated to liabilities and preferred stock of subsidiaries.
Did underwriters receive an over-allotment option in Adamas Trust (ADAM) notes offering?
Yes. Under the underwriting agreement, the underwriters received a 30‑day option to purchase up to an additional $13.5 million aggregate principal amount of the 9.600% Senior Notes due 2031 to cover over‑allotments, if any.
AI-generated analysis. How Rhea-AI works. Not financial advice.
