Rithm Capital announces $750 million at-the-market equity offering program

Rithm Capital Corp. (NYSE:RITM), currently valued at $6.28 billion, disclosed Monday that it has entered into a distribution agreement with a group of financial institutions to sell up to $750 million of its common stock through an at-the-market (ATM) equity offering program. According to InvestingPro data, the company’s shares are currently trading at $11.83, with a notable year-to-date return of 16.89%. The announcement was made in a press release statement and detailed in a filing with the Securities and Exchange Commission.

The distribution agreement, dated Monday, involves BofA Securities, Inc., Barclays Capital Inc., BTIG, LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Nomura Securities International, Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, and Wells Fargo Securities, LLC as sales agents. Under the agreement, shares may be offered and sold from time to time through the ATM program.

The shares will be offered pursuant to Rithm Capital’s registration statement on file with the SEC. The company also filed a prospectus supplement on Monday in connection with the offer, issuance, and sale of the ATM shares.

Rithm Capital is a real estate investment trust based in New York, with its common stock and several series of preferred stock listed on the New York Stock Exchange. The company stands out with its impressive 8.26% dividend yield and has maintained dividend payments for 13 consecutive years, according to InvestingPro analysis. Trading at a price-to-book ratio of 0.93, the stock currently appears undervalued based on InvestingPro’s Fair Value assessment.

The company’s filing also includes a legal opinion from its counsel, Skadden, Arps, Slate, Meagher & Flom LLP, regarding the legality of the securities covered by the prospectus supplement.

This information is based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, Rithm Capital Corp. has announced a series of significant developments. The company priced an underwritten public offering of 7.6 million shares of its 8.75% Series E Fixed-Rate Cumulative Redeemable Preferred Stock, expected to generate approximately $190 million in gross proceeds. These preferred shares will be listed on the New York Stock Exchange under the symbol "RITM PR E." In a major acquisition move, Rithm Capital has agreed to acquire Paramount Group, Inc. in an all-cash transaction valued at approximately $1.6 billion, with the deal expected to close in the fourth quarter of 2025. Additionally, Rithm Capital is set to acquire Crestline Management, an alternative investment manager with $17 billion in assets under management, to enhance its capabilities in various financial sectors. These strategic acquisitions are aimed at expanding Rithm Capital’s reach and capabilities in the investment management landscape.

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