Rithm Capital plans to offer $500 million in senior notes due 2030

NEW YORK - Rithm Capital Corp. (NYSE: RITM) announced Monday plans to offer $500 million in senior unsecured notes due 2030. The company intends to use part of the proceeds to redeem its outstanding 6.250% senior unsecured notes due 2025, with the remainder allocated for general corporate purposes, including potential repayment of other debt. According to InvestingPro data, the company currently maintains a debt-to-equity ratio of 5.0x and a current ratio of 0.66, indicating significant leverage in its capital structure.

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons under Regulation S. The securities have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

Rithm Capital, founded in 2013, operates as a global asset manager focused on credit and real estate assets. The company manages its investments through subsidiaries including Newrez, Genesis Capital, Sculptor Capital Management, and Adoor. According to the press release statement, Rithm has delivered approximately $5.8 billion in dividends to shareholders since its inception.

The company’s announcement does not constitute a formal notice of redemption for the 2025 notes or an offer to sell securities. For comprehensive analysis of Rithm Capital’s financial health and detailed Fair Value assessment, investors can access the full Pro Research Report available on InvestingPro.

In other recent news, Rithm Capital Corp reported first-quarter 2025 earnings that exceeded expectations, with earnings per share (EPS) of $0.52, surpassing the forecasted $0.47. However, the company’s revenue of $768.38 million fell short of the anticipated $1.24 billion. Piper Sandler upgraded Rithm Capital’s stock rating to Overweight, raising the price target to $14.00, citing strong servicing fee income and a robust return on equity. BTIG analysts maintained their Buy rating with a $16.00 price target, noting the company’s strategic expansion in residential and commercial lending. At the 2025 Annual Meeting of Stockholders, Rithm Capital elected two Class III directors and ratified Ernst & Young LLP as the independent registered public accounting firm. Piper Sandler also highlighted Rithm Capital’s resilience in a fluctuating interest rate environment and its potential spin-off of the mortgage business, Newrez, as a catalyst for shareholder value enhancement. The firm expects Rithm to generate strong returns on equity, further bolstered by its significant position as a top U.S. mortgage servicer.

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