NEW YORK - Ready Capital Corporation (NYSE:RC), a multi-strategy real estate finance company with a market capitalization of $1.23 billion, has announced the pricing of a public offering of $115 million in aggregate principal amount of 9.00% Senior Notes due 2029. According to InvestingPro data, the company maintains a significant dividend yield of ~13% and has sustained dividend payments for 9 consecutive years, though its stock has declined ~18% year-to-date. The offering, which is expected to close on December 10, 2024, includes a 30-day over-allotment option for underwriters to purchase an additional $17.25 million of the Notes.
The company has stated that the net proceeds from the offering will be used to originate or acquire assets in line with its investment strategy and for general corporate purposes. Ready Capital is known for its involvement in commercial real estate loans, including agency multifamily, investor, construction, bridge loans, and Small Business Administration loans. The company maintains strong liquidity with a current ratio of 8.45, indicating its ability to meet short-term obligations. For deeper insights into Ready Capital's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips.
The Notes will be available in minimum denominations and multiples of $25.00. Ready Capital aims to list the Notes on the New York Stock Exchange under the symbol "RCD," with trading anticipated to start within 30 days after the offering closes, pending approval.
Morgan Stanley (NYSE:MS) & Co. LLC, Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank, and Wells Fargo (NYSE:WFC) Securities, LLC are serving as book-running managers for the offering.
The offering is made through a preliminary prospectus supplement and accompanying prospectus filed with the Securities and Exchange Commission (SEC), which are available on the SEC's website.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state.
Ready Capital, headquartered in New York, employs approximately 350 professionals nationwide and is externally managed by Waterfall Asset Management, LLC. Based on InvestingPro Fair Value analysis, the stock appears to be slightly undervalued at current levels, though investors should note that analysts have recently revised earnings expectations downward for the upcoming period. The company has cautioned that this press release contains forward-looking statements that involve inherent uncertainties in predicting future results and conditions.
The information in this article is based on a press release statement from Ready Capital Corporation.
In other recent news, Ready Capital Corporation has announced a public offering of senior notes, with the terms, including the interest rate and maturity, to be set at the time of pricing. Morgan Stanley & Co. LLC, Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank, and Wells Fargo Securities, LLC have been named as the book-running managers for this transaction. Furthermore, Ready Capital plans to list these notes on the New York Stock Exchange under the ticker symbol RCD.
In the company's recent financial results for the third quarter of 2024, Ready Capital reported a GAAP loss of $0.07 per share and an adjusted distributable earnings gain of $0.25 per share. Despite a 6% decline in originated loans, the company's commercial real estate portfolio stands at $8.1 billion, and it achieved record small business lending originations of $440 million.
Ready Capital is also making strides in its exit from residential mortgage banking, expected to generate $40 million from remaining mortgage servicing rights. The company maintains a strong liquidity position with $181 million in unrestricted cash and is in discussions with banks for refinancing a $120 million debt maturity due next year. Other recent developments include considerations for aggressive stock buybacks and a potential tax-free spin-off of the digital business focused on small business lending.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.