Ready Capital Corporation Announces Pricing Terms for $120 Million Senior Notes Offering

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) has announced the pricing of an underwritten public offering of $120 million in 6.125% senior unsecured notes due April 30, 2025. The offering is set to close on April 18, 2022. Each note will be priced at $1,000 plus any accrued interest, with minimum denominations of $2,000. Proceeds will fund target asset acquisitions and general business purposes. Piper Sandler & Co. and Keefe, Bruyette & Woods are managing the offering. The prospectus is available through the SEC’s website.

Positive

• Successfully pricing a $120 million public offering indicates strong market interest.
• The 6.125% interest rate may attract investors looking for stable income.
• Proceeds will be used for strategic asset acquisitions, aligning with growth objectives.

Negative

• Issuing new debt could increase leverage and financial risk.
• Interest payments on the new notes may strain cash flows.

NEW YORK, April 8, 2022 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced that it has priced an underwritten public offering of $120 million aggregate principal amount of its 6.125% senior unsecured notes due April 30, 2025.  The offering is expected to close on April 18, 2022 and is subject to customary closing conditions.  The issue price to investors will be $1,000.00 per note, plus accrued interest, if any, from April 18, 2022, if settlement occurs after that date, and the notes will be issued in minimum denominations of $2,000.00 and integral multiples of $1,000.00.  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 business purposes.

Piper Sandler & Co. is serving as book-running manager and Keefe, Bruyette & Woods, A Stifel Company, is serving as lead manager for the offering.

The Company has filed a registration statement, preliminary prospectus and prospectus for the offering to which this communication relates with the Securities and Exchange Commission (the "SEC"), which became effective upon filing with the SEC. The offering will be made only by means of a prospectus supplement and accompanying prospectus. A copy of these documents may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters by contacting: (i) 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 or (ii) Keefe, Bruyette & Woods, A Stifel Company, at 787 Seventh Avenue, Fourth Floor, New York, NY 10019, or by calling 1-800-966-1559, or by email at USCapitalMarkets@kbw.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 600 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, 2021 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 on April 8, 2022?

Ready Capital plans to use the net proceeds from its $120 million offering to acquire target assets and for general business purposes.

When will Ready Capital's senior unsecured notes offering close?

The offering is expected to close on April 18, 2022.

What is the interest rate of Ready Capital's senior unsecured notes?

The senior unsecured notes will have an interest rate of 6.125%.

What is the due date for the senior unsecured notes offered by Ready Capital?

The notes are due on April 30, 2025.

Who are the underwriters for Ready Capital's public offering?

Piper Sandler & Co. is the book-running manager, while Keefe, Bruyette & Woods is the lead manager.