Ready Capital Corporation Announces Pricing of Public Offering of Senior Notes Due 2029

Rhea-AI Summary

Ready Capital (NYSE: RC) has announced the pricing of an underwritten public offering of $115.0 million aggregate principal amount of 9.00% Senior Notes due 2029. The Notes will be issued in denominations of $25.00, with a 30-day over-allotment option for underwriters to purchase up to an additional $17.25 million. The company plans to use proceeds for target asset acquisition and general corporate purposes. The Notes are expected to be listed on NYSE under symbol 'RCD', with trading anticipated within 30 days of the December 10, 2024 closing date. Morgan Stanley, Piper Sandler, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities are serving as book-running managers.

Positive

• Secured $115.0 million in financing through Senior Notes offering
• Additional potential $17.25 million through over-allotment option
• Planned NYSE listing under RCD symbol enhances liquidity

Negative

• High interest rate of 9.00% on Senior Notes increases debt service costs
• Additional debt burden may impact company's financial flexibility

Insights

Financial Analyst

The pricing of $115.0 million in senior notes with a 9.00% yield and potential $17.25 million over-allotment represents a significant capital raise for Ready Capital. The 9.00% interest rate reflects current market conditions and the company's credit profile. This offering provides Ready Capital with additional capital for asset acquisition and general corporate purposes, though at a relatively high cost of capital.

The notes' structure, with $25.00 denominations and NYSE listing plans under symbol "RCD," suggests a focus on retail investor accessibility. The involvement of major underwriters like Morgan Stanley, Piper Sandler and RBC Capital Markets adds credibility to the offering. However, investors should note that rising interest rates could impact Ready Capital's borrowing costs and overall profitability.

NEW YORK, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it priced an underwritten public offering of $115.0 million aggregate principal amount of 9.00% Senior Notes due 2029 (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 $17.25 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 originate or acquire target assets consistent with its investment strategy and for general corporate purposes. Morgan Stanley & Co. LLC, Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank and Wells Fargo Securities, LLC served as book-running managers for the offering.

The offering is expected to close on December 10, 2024 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 "RCD" 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 securities was filed with the Securities and Exchange Commission (the “SEC”) and immediately became effective on March 22, 2022. 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: Morgan Stanley & Co. LLC by calling 1-800-584-6837, 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, RBC Capital Markets, LLC by calling 1-866-375-6829 or by emailing rbcnyfixedincomeprospectus@rbccm.com, UBS Investment Bank by calling 1-888-827-7275, Wells Fargo Securities, LLC by calling 1-800-645-3751 or by emailing wfscustomerservice@wellsfargo.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 lower-to-middle-market investor and owner occupied commercial real estate loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, 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 approximately 350 professionals nationwide. Ready Capital 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, 2023 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

FAQ

What is the interest rate and amount of Ready Capital's (RC) 2024 Senior Notes offering?

Ready Capital's Senior Notes offering is priced at 9.00% for $115.0 million aggregate principal amount, due 2029.

When will Ready Capital's (RC) new Senior Notes begin trading on NYSE?

Trading of the Notes under symbol 'RCD' is expected to commence within 30 days of the December 10, 2024 closing date, subject to NYSE listing approval.

How will Ready Capital (RC) use the proceeds from its 2024 Senior Notes offering?

Ready Capital plans to use the net proceeds to originate or acquire target assets consistent with its investment strategy and for general corporate purposes.