Ready Capital Corporation Announces Closing of Public Offering of Senior Notes and Full Exercise of Over-allotment Option

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) announced the closing of a public offering of $201.25 million of 5.75% Senior Notes due 2026. This includes $26.25 million from the underwriters' over-allotment option. Proceeds will be used to redeem 6.50% Senior Notes due 2021 and for general business purposes, including funding small balance commercial loans. The Notes will trade under the symbol 'RCC' on the NYSE within 30 days. The offering was previously declared effective by the SEC.

Positive

• Raised $201.25 million through the public offering to enhance liquidity.
• Intended use of funds includes redeeming higher interest notes (6.50%) reducing financial burden.
• Funding pipeline for small balance commercial origination could lead to future growth.

Negative

• Dilution of existing shareholders due to additional debt issuance.
• Shift from higher interest notes (6.50%) to lower rates could reflect ongoing financing challenges.

NEW YORK, Feb. 10, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it closed an underwritten public offering of $201.25 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Notes"), including $26.25 million aggregate principal amount relating to the full exercise of the underwriters' over-allotment option.  The Notes were issued in minimum denominations and integral multiples of $25.00.  The Company intends to use the net proceeds from this offering to redeem the outstanding aggregate principal amount of our 6.50% Senior Notes due 2021.  The Company intends to use the remainder of the net proceeds for general business purposes, including to fund the Company's small balance commercial origination and acquisition pipelines. Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co. served as book-running managers for the offering.

The Notes have been approved for listing on the New York Stock Exchange under the symbol "RCC" and trading is expected to commence within 30 days of the closing of the offering.

A registration statement relating to the Notes was declared effective by the Securities and Exchange Commission (the "SEC") on August 4, 2020.  The offering was made only by means of a preliminary prospectus supplement and accompanying prospectus, which have been filed with the SEC.  A copy of the prospectus supplement and accompanying prospectus may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters by contacting: Keefe, Bruyette & Woods, Inc., A Stifel Company at 787 Seventh Avenue, Fourth Floor, New York, NY 10019, or by calling toll-free 1-800-966-1559, or by email at USCapitalMarkets@kbw.com, or Morgan Stanley & Co. LLC at 1585 Broadway, 4th Floor, New York, NY 10036, or by calling toll-free 1-800-584-6837, or by email at prospectus@morganstanley.com, or Piper Sandler & Co. at 1251 Avenue of the Americas, 6th Floor, New York, NY 10020, or by calling toll-free 866-805-4128, or by email at fsg-dcm@psc.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities, nor shall there be any sale of the Company's securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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-sized balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, Ready Capital employs over 400 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.

Forward-Looking Statements

This press release contains certain forward-looking statements.  Words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "could," "would," "may," "potential"" or the negative of those terms or other comparable terminology are intended to identify forward-looking statements.  These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of the Company, including, without limitation, the risk factors and other matters set forth in the prospectus supplement and the accompanying prospectus and the Company's Annual Report on Form 10–K for the year ended December 31, 2019 filed with the SEC and in its other filings with the SEC.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Contacts:

Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com

View original content:http://www.prnewswire.com/news-releases/ready-capital-corporation-announces-closing-of-public-offering-of-senior-notes-and-full-exercise-of-over-allotment-option-301226408.html

SOURCE Ready Capital Corporation

FAQ

What is the purpose of the public offering by Ready Capital Corporation (RC)?

The public offering aims to raise funds for redeeming existing 6.50% Senior Notes due 2021 and for general business purposes.

How much capital was raised in the recent offering by RC?

Ready Capital raised $201.25 million through its public offering of Senior Notes.

When are the new Senior Notes expected to start trading?

The new Senior Notes are expected to commence trading on the NYSE under the symbol 'RCC' within 30 days of the offering's closing.

What are the interest rates of the Senior Notes issued by RC?

The newly issued Senior Notes have an interest rate of 5.75%, while the notes being redeemed have a higher rate of 6.50%.

Who managed the public offering for Ready Capital Corporation?

Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC, and Piper Sandler & Co. served as book-running managers for the offering.