Ready Capital Corporation Announces Pricing of Public Offering of Preferred Stock

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) announced the pricing of a public offering of 4,000,000 shares of its 6.50% Series E Cumulative Redeemable Preferred Stock at $25.00 per share, potentially raising up to $115 million if over-allotment options are exercised. The proceeds will be used to redeem previous preferred stock and for general business purposes. The offering is set to close on June 10, 2021, with trading on the NYSE expected to commence soon after. The company aims to strengthen its capital structure with this issuance.

Positive

• Intended use of proceeds includes redeeming higher-cost preferred stock, potentially reducing interest expenses.
• Offering could enhance financial stability and operational flexibility.

Negative

• Issuance of new preferred shares may result in dilution for existing shareholders.
• Market reaction to the offering could negatively affect share price.

NEW YORK, June 3, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it priced an underwritten public offering of 4,000,000 shares of its 6.50% Series E Cumulative Redeemable Preferred Stock (the "Preferred Stock") at a public offering price of $25.00 per share.  The Company also granted a 30-day over-allotment option to purchase up to an additional 600,000 shares of the Preferred Stock at the public offering price, less underwriting discounts and commissions.  The Preferred Stock will have a $25.00 per share liquidation preference.  The Company will receive gross proceeds of $100,000,000 (or $115,000,000 if the underwriters exercise their over-allotment option in full) from the sale of the Preferred Stock before deducting the underwriting discounts and other estimated offering expenses. 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 Cumlative 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. are acting as book-running managers for the offering. B. Riley Securities, Inc., BTIG LLC, Ladenburg Thalmann & Co. Inc. and Wedbush Securities Inc. are acting as co-managers for the offering.

The offering is expected to close on June 10, 2021 and is subject to customary closing conditions.

The Company intends to apply to list the Preferred Stock on the New York Stock Exchange under the symbol "RC PRE" 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 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 proposed offering of the Preferred Stock, 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

 

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SOURCE Ready Capital Corporation

FAQ

What is the pricing for Ready Capital's preferred stock offering?

The offering is priced at $25.00 per share.

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

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

How much does Ready Capital aim to raise from this stock offering?

Ready Capital aims to raise $100 million, potentially $115 million if the over-allotment is fully exercised.

What will Ready Capital do with the proceeds from the preferred stock offering?

Proceeds will be used to redeem higher-cost preferred stock and for general business purposes.