REIT Ready Capital (RC) has announced a new issue of baby bonds (senior notes).
This new issue has been expected as the company has a 6.50% baby bond issue (RCP) maturing on 4/30/2021. The ‘use of proceeds’ for the new issue state they will call the baby bonds with the proceeds. The only question is what date will be used for the call–in 30 days or not until 4/30. Shares are trading around $25.17 now so no harm will come to holders as the interest payment is 41 cents/quarter and they paid a dividend in January.
The new issue will trade under permanent ticker RCC once it begins trading on the NYSE in a week or 10 days.
J was right on top of this one.