Ready Capital Corporation Announces Pricing of Public Offering of Senior Notes

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) announced a public offering of $175 million in 5.75% Senior Notes due 2026. The offering includes a 30-day over-allotment option for an additional $26.25 million. Proceeds will be used to redeem existing 6.50% Senior Notes due 2021 and to support business operations, including commercial loan pipelines. The offering is set to close on February 10, 2021, with plans to list the Notes on the NYSE under symbol RCC.

Positive

• Proceeds will be used to redeem existing 6.50% Senior Notes, improving interest expense.
• Supports funding for small balance commercial origination and acquisition pipelines.

Negative

• Issuing new debt may lead to dilution for existing shareholders.

NEW YORK, Feb. 8, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it priced an underwritten public offering of $175.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Notes").  The Notes will be issued in minimum denominations and integral multiples of $25.00.  The Company has granted to the underwriters a 30-day over-allotment option to purchase up to an additional $26.25 million aggregate principal amount of the Notes at the public offering price, less the underwriting discount.  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 offering is expected to close on February 10, 2021 and is subject to customary closing conditions. The Company intends to apply to list the Notes on the New York Stock Exchange under the symbol "RCC" and, if the application is approved, 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

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SOURCE Ready Capital Corporation

FAQ

What is the purpose of Ready Capital's public offering of Senior Notes?

The offering aims to redeem existing 6.50% Senior Notes due 2021 and fund new commercial loans.

When is the expected closing date for Ready Capital's public offering?

The offering is expected to close on February 10, 2021.

How much is Ready Capital raising in their public offering?

Ready Capital is raising $175 million in the public offering.

What will happen to the existing 6.50% Senior Notes after the offering?

The proceeds from the offering will be used to redeem the existing 6.50% Senior Notes.

Will the new Senior Notes be listed on an exchange?

Yes, Ready Capital plans to list the new Senior Notes on the New York Stock Exchange under the symbol RCC.