Ready Capital Announces Acquisition of Red Stone
Ready Capital (NYSE: RC) announced its acquisition of Red Stone, a company specializing in affordable housing finance, on August 3, 2021. This strategic move aims to diversify Ready Capital's business and enhance its presence in a growing market with low correlation to its existing operations. Red Stone’s management team and employees will join Ready Capital, which acquired the company through cash, stock, and assuming certain financial guarantees. The acquisition reflects Ready Capital's commitment to affordable housing, highlighting a significant opportunity for future growth and shareholder benefits.
- Acquisition expands Ready Capital's presence in the affordable housing sector, which shows significant growth potential.
- The integration of Red Stone's experienced management team can enhance operational effectiveness and market reach.
- Diversification into a low-correlation sector could mitigate risks associated with Ready Capital's existing business.
- Financial details of the acquisition were not disclosed, leaving uncertainty regarding its impact on Ready Capital's cash flow and liabilities.
- Assumption of Red Stone's existing debt obligations could impose additional financial strain on Ready Capital.
NEW YORK, Aug. 3, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital"), a multi-strategy real estate finance company that originates, acquires, finances and services commercial loans, today announced its acquisition of Red Stone and its affiliates ("Red Stone"). Red Stone is a real estate finance and investment company that provides innovative financial products and services to the multifamily affordable housing industry. Red Stone's management team, led by John Sokolovic, and all employees have joined Ready Capital. The acquisition will further diversify Ready Capital's business and represents its commitment to affordable housing.
"Affordable housing finance presents a significant growth opportunity that will benefit our shareholders by expanding our presence in a sector with low correlation to our other businesses," said Tom Capasse, Chairman and Chief Executive Officer of Ready Capital. "Moreover, the team at Red Stone has enormous talent and we look forward to building on their success collaboratively in the future."
"We are very proud of our team's achievements not only in providing exceptional financial products to our clients but also our team's dedication and commitment toward the production of much needed affordable housing throughout the United States" said John Sokolovic, Chairman and Co-Founder of Red Stone. "By joining the team at Ready Capital, we are confident that we can continue to grow and serve our clients, financial partners, and the affordable housing community while adding value for Ready Capital's shareholders."
Ready Capital acquired the entities through which Red Stone conducts its affordable housing finance business in exchange for cash and stock as well as the assumption of certain Red Stone guarantees of secured indebtedness.
Ready Capital received financial advice on the transaction from Houlihan Lokey and legal advice from Clifford Chance US LLP. Red Stone received financial advice on the transaction from Riparian Partners and legal advice from Jones Day.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC. For more information, visit http://www.readycapital.com.
About Red Stone
Red Stone is a privately-owned real estate finance and investment company that provides innovative financial products and services to the multifamily affordable housing industry throughout the United States. Red Stone focuses on providing acquisition, development period and permanent mortgage capital on properties that are financed utilizing tax-exempt and taxable bonds. Since its founding in 2002, Red Stone has provided in excess of
Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
www.readycapital.com
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SOURCE Ready Capital Corporation
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