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NEW YORK - Rithm Capital Corp. (NYSE:RITM), a $5.9 billion market cap asset manager trading at 9.2 times earnings, has priced an offering of $500 million in senior unsecured notes with an 8.000% interest rate due 2030, the company announced Tuesday.
The asset management firm plans 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, which may include repaying other debt. According to InvestingPro data, the company’s current ratio stands at 0.66, indicating tight liquidity, while total debt to capital ratio is 0.81.
The offering is expected to close on Thursday, June 20, subject to customary closing conditions. The notes will not have registration rights and are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons under Regulation S.
Rithm Capital, formerly known as New Residential Investment Corp., operates as a global asset manager focused on credit and real estate assets. The company manages investments through subsidiaries including Newrez, Genesis Capital, Sculptor Capital Management, and Adoor.
Since its founding in 2013, Rithm reports it has delivered approximately $5.8 billion in dividends to shareholders. The company currently offers an attractive 8.86% dividend yield and has maintained dividend payments for 13 consecutive years, according to InvestingPro analysis. The company is headquartered in New York City. For detailed insights into RITM’s dividend sustainability and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This information is based on a press release statement from Rithm Capital.
In other recent news, Rithm Capital Corp. has announced plans to offer $500 million in senior unsecured notes due in 2030. The company aims to use part of the proceeds to redeem its outstanding 6.250% senior unsecured notes due in 2025, with the remainder designated for general corporate purposes. Analysts from BTIG have maintained a Buy rating for Rithm Capital, with a price target of $16.00, highlighting the company’s estimated net asset value at $12.70 per share and projected distributable earnings of $2.20 for the full year 2025. Piper Sandler also reaffirmed its Overweight rating on Rithm Capital, with a price target of $14.00, citing the company’s resilience in a fluctuating interest rate environment and its focus on mortgage servicing through its subsidiary Newrez. Additionally, Rithm Capital reported the results of its 2025 Annual Meeting of Stockholders, where two Class III directors were elected, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year. Piper Sandler further upgraded Rithm Capital’s stock rating to Overweight, noting the company’s undervaluation and potential for a 40%+ total return over the next 12 months. These recent developments highlight Rithm Capital’s strategic initiatives and analyst confidence in its growth potential.
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