Ready Capital Corporation - RC STOCK NEWS

NexPoint has issued a statement criticizing United Development Funding IV (UDF IV)'s decision not to reconvene its 2024 Annual Meeting of Shareholders due to lack of quorum. NexPoint expresses deep concerns about UDF IV's governance and its handling of the proposed Ready Capital acquisition. The company calls for UDF IV to reconvene the meeting within 120 days, but only after providing complete disclosure of the Ready Capital transaction details.

Independent proxy advisory firm Glass Lewis shares NexPoint's concerns about disclosure deficiencies and transaction timing. NexPoint believes the Annual Meeting vote was closer than reported, indicating significant shareholder dissatisfaction. The company criticizes UDF IV for suppressing shareholder engagement and spending substantial shareholder funds on legal and PR efforts while avoiding accountability.

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.

NexPoint Real Estate Opportunities announced it will not attend or vote at UDF IV's Annual Meeting on December 10, 2024, citing concerns about the recently announced merger with Ready Capital (NYSE:RC). NexPoint criticizes the timing of the merger announcement, made just eight days before the Annual Meeting, and the lack of proper disclosures for shareholders to evaluate the transaction.

The company calls for the meeting's adjournment until full disclosure is provided, arguing that UDF IV is manipulating shareholders by suggesting that voting for NexPoint's nominees equals voting against the merger. Both Glass Lewis and Egan-Jones proxy advisory firms recommend voting 'FOR' all NexPoint nominees, expressing concerns about the merger's timing and transparency.

Ready Capital (NYSE: RC) has announced the pricing of an underwritten public offering of $115.0 million aggregate principal amount of 9.00% Senior Notes due 2029. The Notes will be issued in denominations of $25.00, with a 30-day over-allotment option for underwriters to purchase up to an additional $17.25 million. The company plans to use proceeds for target asset acquisition and general corporate purposes. The Notes are expected to be listed on NYSE under symbol 'RCD', with trading anticipated within 30 days of the December 10, 2024 closing date. Morgan Stanley, Piper Sandler, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities are serving as book-running managers.

Ready Capital (NYSE: RC) has announced the commencement of an underwritten public offering of senior unsecured notes due 2029. 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 notes will be listed on the NYSE under the symbol RCD. Morgan Stanley, Piper Sandler, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities are serving as book-running managers for the offering. The specific terms, including maturity and interest rate, will be determined during pricing.

Ready Capital (NYSE:RC) has announced a definitive merger agreement to acquire United Development Funding IV (UDF IV). UDF IV shareholders will receive up to $5.89 per share through: (i) pre-closing distributions up to $2.44 per share, (ii) Ready Capital shares valued at $3.07 per share, and (iii) contingent value rights worth up to $0.38 per share. The transaction will expand Ready Capital's portfolio with UDF IV's land development lending platform, creating a combined company with over $2.2 billion in equity capital. UDF IV shareholders will own approximately 7% of Ready Capital's outstanding shares post-merger. The deal is expected to close in first half of 2025, subject to UDF IV shareholder approval.

Ready Capital reported financial results for Q3 2024, showing a GAAP loss per share of $(0.07) and distributable earnings per share of $(0.28). The quarter saw Lower-to-Middle Market originations of $246 million and record Small Business Lending loan originations of $440 million, including $355 million in SBA 7(a) loans. The company maintained a net book value of $12.59 per share and declared a dividend of $0.25 per share. Notable developments include the acquisition of Funding Circle USA and efforts to reposition underperforming loans into market yielding investments.

Ready Capital (NYSE: RC) has scheduled its third quarter 2024 financial results release for Thursday, November 7, 2024, after NYSE market close. The company will host a webcast and conference call on Friday, November 8, 2024, at 8:30 a.m. Eastern Time to discuss quarterly results and provide business updates. Ready Capital is a multi-strategy real estate finance company focusing on lower-to-middle-market commercial real estate loans, including agency multifamily, investor, construction, bridge, and SBA Section 7(a) loans. The company employs about 350 professionals nationwide.

Ready Capital (NYSE:RC) has announced its Q3 2024 dividend declarations. The company will pay a quarterly cash dividend of $0.25 per share of common stock and Operating Partnership unit, payable on October 31, 2024. This decision aligns with the company's long-term growth objectives. CEO Thomas Capasse highlighted that $338 million of assets have been sold, generating $57 million in net liquidity, and $290 million in Small Business Lending loans have been originated in Q3. The Board also declared dividends for Series C and E Preferred Stock. Ready Capital specializes in lower-to-middle-market commercial real estate loans and employs about 350 professionals nationwide.