Ready Capital Corporation Announces Pricing of its Upsized Public Offering of Common Stock

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) has priced an upsized public offering of 7,000,000 shares of common stock, aiming for total gross proceeds of approximately $108.9 million. The underwriters will have a 30-day option to purchase an additional 1,050,000 shares. The net proceeds will be used to originate or acquire target assets aligned with its investment strategy, as well as for general corporate purposes. The offering is set to close on January 14, 2022, pending customary closing conditions.

Positive

• Total gross proceeds of approximately $108.9 million from the offering.
• Net proceeds will support target asset acquisitions, aligning with investment strategy.

Negative

• Potential dilution of existing shares from the offering.
• -

NEW YORK, Jan. 11, 2022 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that the Company has priced an upsized underwritten public offering of 7,000,000 shares of common stock for total gross proceeds of approximately $108.9 million. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to 1,050,000 additional shares of common stock. The Company intends to use the net proceeds from this offering to originate or acquire the Company's target assets consistent with its investment strategy and for general corporate purposes. The offering is expected to close on January 14, 2022, and is subject to customary closing conditions.

Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, Keefe, Bruyette & Woods, A Stifel Company, and Raymond James are acting as the joint book-running managers for the offering. The underwriters propose to offer the shares of common stock from time to time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.  

A registration statement relating to the shares of common stock was filed and immediately became effective on January 11, 2022. The offering was made by means of a preliminary prospectus supplement and accompanying prospectus. A copy of the preliminary prospectus supplement and accompanying prospectus may be obtained free of charge at the website of the Securities and Exchange Commission (the "SEC") at www.sec.gov or from the underwriters by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014; UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectusrequest@ubs.com; Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West 33rd Street - 14th Floor, New York, NY 10001 or by telephone at 1-800-326-5897 or by email at cmclientsupport@wellsfargo.com; Keefe, Bruyette & Woods, A Stifel Company at 787 Seventh Avenue, Fourth Floor, New York, NY 10019, by e-mail at USCapitalMarkets@kbw.com, by fax at 212-581-1592, or by calling 1-800-966-1559; or Raymond James & Associates, Inc., Attn: Syndicate, 880 Carillon Parkway, St. Petersburg, FL 33716, by telephone at (800) 248-8863 or by email at prospectus@raymondjames.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, 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 

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SOURCE Ready Capital Corporation

FAQ

What is the significance of Ready Capital's recent stock offering on January 11, 2022?

Ready Capital priced an upsized public offering of 7,000,000 shares, projected to raise approximately $108.9 million, which may impact shareholder equity.

How will Ready Capital use the proceeds from the stock offering?

The proceeds will be used to acquire target assets that align with Ready Capital's investment strategy and for general corporate purposes.

When is the expected closing date of Ready Capital's stock offering?

The offering is expected to close on January 14, 2022, subject to customary closing conditions.

What options do the underwriters have regarding Ready Capital's stock offering?

The underwriters have a 30-day option to purchase up to an additional 1,050,000 shares of common stock.

Is there a risk of dilution for Ready Capital shareholders after the stock offering?

Yes, existing shareholders may face dilution of their ownership due to the issuance of new shares in the public offering.