Ready Capital Corporation Announces Closing of Public Offering of Preferred Stock and Full Exercise of Over-allotment Option

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) announced the closure of a public offering, raising approximately $111.4 million by issuing 4,600,000 shares of its 6.50% Series E Cumulative Redeemable Preferred Stock. The total includes 600,000 shares from the underwriters' over-allotment option. The net proceeds will primarily be used to redeem existing preferred stocks and for general business purposes, including repaying borrowings. The Preferred Stock, with a liquidation preference of $25.00 per share, is set to trade under the symbol RC PRE.

Positive

• Raised approximately $111.4 million from the offering.
• Proceeds will be used to redeem higher-cost preferred stock, improving capital structure.
• The issuance of preferred stock could enhance liquidity.

Negative

• Potential dilution of existing shareholders due to the new preferred stock issuance.

NEW YORK, June 10, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it closed an underwritten public offering of 4,600,000 shares of its 6.50% Series E Cumulative Redeemable Preferred Stock, par value $0.0001 per share (the "Preferred Stock"), including 600,000 shares relating to the full exercise of the underwriters' over-allotment option, with a liquidation preference of $25.00 per share.

The Company received net proceeds of approximately $111.4 million from the sale of the Preferred Stock after deducting the underwriting discounts but before estimated offering expenses payable by the Company. The Company intends to contribute the net proceeds from this offering to its operating partnership, Sutherland Partners, L.P., which in turn will use the net proceeds to redeem, in whole or in part, its 8.625% Series B Cumulative Preferred Stock and its 7.625% Series D Cumulative Redeemable Preferred Stock, and may use the remainder of the net proceeds, if any, for general business purposes, which may include the repayment of borrowings outstanding under our loan repurchase agreements or credit facilities.

Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co. acted as book-running managers for the offering. B. Riley Securities, Inc., BTIG LLC, Ladenburg Thalmann & Co. Inc. and Wedbush Securities Inc. acted as co-managers for the offering.

The Preferred Stock has been authorized for listing on the New York Stock Exchange under the symbol "RC PRE" and trading is expected to commence within 30 days of the closing of the offering.

A registration statement relating to the Preferred Stock 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 include statements relating to, among other things, the expected use of the net proceeds from the offering and the Company's expectations concerning market conditions for an offering of the Preferred Stock.  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, 2020 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-preferred-stock-and-full-exercise-of-over-allotment-option-301310455.html

SOURCE Ready Capital Corporation

FAQ

What was the total amount raised in Ready Capital's recent preferred stock offering?

Ready Capital raised approximately $111.4 million in its recent public offering.

What is the purpose of the proceeds from Ready Capital's stock offering?

The proceeds will primarily be used to redeem existing preferred stock and for general business purposes.

What type of preferred stock was offered by Ready Capital?

Ready Capital offered 6.50% Series E Cumulative Redeemable Preferred Stock.

When is trading expected to begin for the new preferred stock?

Trading for the new preferred stock is expected to commence within 30 days of the offering's closing.

What is the liquidation preference of the new preferred stock?

The liquidation preference of the new preferred stock is $25.00 per share.