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NEW YORK - Rithm Capital Corp. (NYSE:RITM), a $6.6 billion market cap alternative asset manager trading near its 52-week high of $12.74, announced Thursday it has launched an underwritten public offering of Series E Fixed-Rate Cumulative Redeemable Preferred Stock, with terms to be determined through negotiations with underwriters.
The company plans to list the preferred shares on the New York Stock Exchange under the symbol "RITM PR E" and will grant underwriters a 30-day option to purchase up to an additional 15% of shares to cover potential over-allotments.
Proceeds from the offering will be used for investments and general corporate purposes, according to the company’s statement.
Multiple financial institutions are serving as joint bookrunners for the offering, including Morgan Stanley, J.P. Morgan Securities, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities, BTIG, Citigroup Global Markets, Goldman Sachs, and Piper Sandler.
The offering is being conducted through Rithm’s existing shelf registration statement filed with the Securities and Exchange Commission.
Rithm Capital describes itself as a global alternative asset manager with expertise in credit and real estate assets. The company operates through subsidiaries including Newrez, Genesis Capital, and Sculptor Capital Management.
The completion of the offering remains subject to market conditions, based on the press release statement.
In other recent news, Paramount Group announced a definitive agreement to be acquired by Rithm Capital Corp. in an all-cash transaction valued at approximately $1.6 billion. Under the terms of the agreement, Rithm Capital will pay $6.60 per fully diluted share for all outstanding Paramount common stock. This acquisition is expected to close in the fourth quarter of 2025, following approval from both companies’ boards. Rithm Capital also disclosed plans to acquire Crestline Management, an alternative investment manager with approximately $17 billion in assets under management. This acquisition aims to expand Rithm’s capabilities in various financial sectors. Additionally, Rithm Capital resolved a legal case related to its board structure, with a Delaware court closing the litigation. In analyst news, Keefe, Bruyette & Woods raised its price target for Rithm Capital to $14, maintaining an Outperform rating. The adjustment was attributed to an increase in book value during the second quarter.
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