Rithm Capital Corp. Announces a Redemption of $50 million of 7.50% Series A Fixed‑to‑Floating Rate Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Rithm Capital (NYSE: RITM) has announced a partial redemption of its Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The company will redeem $50 million worth of shares, equivalent to 2 million shares out of the outstanding 6.21 million Series A shares.

The redemption will occur on March 28, 2025, with shareholders receiving $25.00 per share in cash, plus $0.274091 per share in accumulated and unpaid distributions. The Series A shares currently trade under the ticker symbol 'RITM PR A'. A Notice of Partial Redemption was distributed to shareholders on February 26, 2025.

Positive

• Reduces preferred dividend obligations
• Demonstrates financial flexibility to manage capital structure

Negative

• Reduces available preferred equity capital by $50M

Insights

Financial Analyst

Rithm Capital's partial redemption of $50 million (2 million shares) of its 7.50% Series A preferred stock represents a strategic capital structure optimization. By redeeming approximately 32.2% of these high-yield preferred shares at par value ($25.00) plus accrued dividends, Rithm will realize annual interest savings of approximately $3.75 million.

The timing of this redemption is particularly noteworthy. With the Series A shares being fixed-to-floating rate instruments, Rithm may be strategically redeeming a portion before a potential rate reset date, suggesting management anticipates either unfavorable floating rate adjustments or has identified more cost-effective capital alternatives. The partial nature of the redemption (rather than full) indicates a balanced approach to capital management – reducing high-cost preferred equity while maintaining financial flexibility.

For the remaining preferred shareholders, this partial redemption doesn't change their dividend rights but could impact liquidity and trading patterns of the remaining shares. For common shareholders, this represents a positive development as it reduces the senior claims on the company's cash flows, potentially increasing residual value available to common equity.

This move aligns with broader industry trends where mortgage REITs are optimizing capital structures in response to the evolving interest rate environment. The redemption signals management confidence in Rithm's liquidity position and reflects their active approach to capital allocation as they balance leverage, dividend obligations, and investment opportunities in the current market.

NEW YORK--(BUSINESS WIRE)-- Rithm Capital Corp. (NYSE: RITM; “Rithm Capital” or the “Company”) announced today that it will redeem $50,000,000, or 2,000,000 shares, of the Company’s outstanding 6,210,000 shares of 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series A Shares”) at a redemption price equal to $25.00 per Series A Share in cash, plus $0.274091 per Series A Share of accumulated and unpaid distributions thereon to, but not including, the redemption date of March 28, 2025 (the “Redemption”). The Series A Shares trade under the ticker symbol “RITM PR A.”

A Notice of Partial Redemption for the Series A Shares describing the Redemption procedures was sent to holders of the Series A Shares on February 26, 2025. Additional information related to the Redemption procedures, including copies of the Notice of Partial Redemption, may be obtained from Equiniti Trust Company, LLC by calling 718-921-8317.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

ABOUT RITHM CAPITAL

Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, leading mortgage origination and servicing platforms. Rithm Capital seeks to generate attractive risk-adjusted returns across market cycles and interest rate environments. Since inception in 2013, Rithm has delivered approximately $5.8 billion in dividends to shareholders. Rithm is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the Redemption. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Cautionary Statement Regarding Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual report and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (www.rithmcap.com). New risks and uncertainties emerge from time to time, and it is not possible for Rithm Capital to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Forward-looking statements contained herein speak only as of the date of this press release, and Rithm Capital expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Rithm Capital's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

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Investor Relations

212-850-7770

ir@rithmcap.com

Source: Rithm Capital Corp.

FAQ

How much is Rithm Capital (RITM) redeeming of its Series A Preferred Stock?

Rithm Capital is redeeming $50 million worth, or 2 million shares, of its Series A Preferred Stock.

What is the redemption price for RITM's Series A Preferred shares?

The redemption price is $25.00 per share plus $0.274091 in accumulated unpaid distributions.

When is the redemption date for RITM's Series A Preferred Stock?

The redemption date is March 28, 2025.

How many Series A Preferred shares will remain after RITM's partial redemption?

4.21 million Series A Preferred shares will remain after the redemption of 2 million shares from the total 6.21 million outstanding shares.