Ready Capital Corporation Enters into Underwriting Agreement for $115 Million Notes Offering

Ready Capital Corporation (NYSE:RC) has announced its entry into an underwriting agreement on December 3, 2024, with Sutherland Partners, L.P., Waterfall Asset Management, LLC, and several underwriters including Morgan Stanley & Co. LLC, Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank, and Wells Fargo Securities, LLC.

This agreement entails the purchase of $115 million aggregate principal amount of Ready Capital Corporation’s 9.00% senior unsecured notes due 2029. The issuance and sale of the notes are scheduled to take place on December 10, 2024, subject to customary closing conditions.

The net proceeds from the note offering will be channeled by the company to its Operating Partnership in exchange for a senior unsecured note with terms essentially mirroring those of the issued notes. The Operating Partnership plans to utilize the funds for originating or acquiring target assets in alignment with the company’s investment strategy and for general corporate purposes.

While the Operating Partnership anticipates using the net proceeds for these specified objectives, it may initially allocate a portion to temporarily reduce borrowings under existing loan repurchase agreements or credit facilities. Additionally, the net proceeds might be directed towards interest-bearing short-term investments, such as money market accounts, to ensure Ready Capital Corporation maintains its status as a real estate investment trust.

The sale of the notes is anticipated to offer net proceeds of approximately $110.9 million after taking into account underwriters’ discounts and commissions as well as estimated offering expenses.

These notes have been registered with the Securities and Exchange Commission as per the company’s automatic shelf registration statement on Form S-3, under the Securities Act of 1933. Detailed terms of the notes are outlined in the preliminary prospectus supplement and free writing prospectus, filed with the Commission on December 3, 2024, supplementing the company’s existing prospectus within the Registration Statement filed on March 22, 2022.

Furthermore, customary representations, warranties, and covenants were made by Ready Capital Corporation and the Operating Partnership in the Underwriting Agreement to safeguard the interests of the Underwriters. These provisions are made solely for the benefit of the involved parties and are subject to specified limitations and qualifications.

For a comprehensive understanding of the agreement, the Underwriting Agreement has been filed as Exhibit 1.1 to the Current Report on Form 8-K by Ready Capital Corporation. The underwriting terms and conditions are an integral part of this agreement.

In adherence to regulatory requirements, the company’s Chief Financial Officer, Andrew Ahlborn, signed off on this report on December 6, 2024. The full report, including the Underwriting Agreement, is available for reference.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ready Capital’s 8K filing here.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments.