New Residential Investment Corp. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

New Residential Investment Corp. (NRZ) has announced the pricing of a public offering of 45 million shares at $10.10 per share, expected to close on April 19, 2021. The offering includes an option for underwriters to purchase an additional 6.75 million shares. Proceeds will primarily finance the acquisition of Caliber Home Loans and cover related expenses. If the acquisition does not proceed, funds will be allocated for general corporate purposes. The offering is made under an effective shelf registration statement with the SEC.

Positive

• Raising $454.5 million through the public offering at $10.10 per share.
• Funds will be used to acquire Caliber Home Loans, enhancing business operations.

Negative

• Potential shareholder dilution from the issuance of 45 million shares plus an additional 6.75 million shares.
• If the acquisition of Caliber does not proceed, the funds will have a less strategic use.

New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) announced today that it priced its underwritten public offering of 45,000,000 shares of its common stock at a public offering price of $10.10 per share. The offering is expected to close on April 19, 2021, subject to customary closing conditions. In connection with the offering, the Company has granted the underwriters an option for a period of 30 days to purchase up to an additional 6,750,000 shares of common stock.

The Company intends to use the net proceeds from this offering to finance its previously announced acquisition of Caliber Home Loans, Inc. (“Caliber”) and to pay related fees and expenses, and any remaining proceeds for investments and general corporate purposes. In the event that the Caliber acquisition does not occur, the Company intends to use the net proceeds from this offering for general corporate purposes.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are acting as joint book-running managers for the offering. BTIG, Keefe, Bruyette & Woods, A Stifel Company, Piper Sandler, Raymond James and Wedbush Securities Inc. are acting as co-managers for the offering.

The offering is being made pursuant to the Company’s effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus and a related prospectus supplement. Prospective investors should read the prospectus supplement and the prospectus in that registration statement and other documents the Company has filed or will file with the SEC for more complete information about the Company and the offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and the prospectus may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (800) 831-9146.

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

ABOUT NEW RESIDENTIAL

New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses. New Residential has built a diversified, portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time. New Residential’s portfolio is composed of mortgage servicing related assets (including investments in operating entities consisting of servicing, origination, and affiliated businesses), residential securities (and associated called rights) and loans, and consumer loans. New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, NewRez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets. Since inception in 2013, New Residential has a proven track record of performance, growing and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.6 billion in dividends to shareholders. New Residential is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. New Residential is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm, and headquartered in New York City.

FORWARD-LOOKING STATEMENTS

Certain information in this press release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the offering and the intended use of proceeds of the offering. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein.

For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Cautionary Statements Regarding Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website. New risks and uncertainties emerge from time to time, and it is not possible for New Residential to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Forward-looking statements contained herein speak only as of the date of this press release, and New Residential expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in New Residential’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

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FAQ

What is New Residential's recent public offering price for NRZ shares?

The recent public offering price for New Residential (NRZ) shares is $10.10.

When is the expected closing date for New Residential's public offering?

The expected closing date for New Residential's public offering is April 19, 2021.

What will New Residential do with the proceeds from the public offering?

New Residential plans to use the proceeds to finance the acquisition of Caliber Home Loans and for related fees and expenses.

Is there a risk of shareholder dilution with New Residential's public offering?

Yes, there is a potential risk of shareholder dilution due to the issuance of 45 million shares plus an additional 6.75 million shares.

What happens if the acquisition of Caliber Home Loans does not occur?

If the acquisition does not occur, New Residential plans to use the net proceeds for general corporate purposes.