REIT Ready Capital to Offer Senior Notes

mREIT Ready Capital (NYSE:RC), which was formerly Sutherland Asset Management, has announced an offering of $25 senior notes.

The notes interest payment is an unqualified interest payment taxed at ordinary tax rates. The issue will be unrated.

The notes will have a maturity date in 2026, with an optional redemption date starting in 2022. The issue will offer 101% of principal, plus accrued and unpaid interest if redeemed early starting in 2022 until mid year 2025 (exact dates not announced) which will then go to 100% for part of 2025 until maturity.

The notes will trade on the NYSE under ticker RCB. There will be no OTC Grey market trading on these, although it is possible some brokers bond desk may trade these prior to NYSE listing.

The preliminary prospectus can be read here.

The company has 2 baby bonds outstanding already which can be seen here.

8 thoughts on “REIT Ready Capital to Offer Senior Notes”

  1. The Ready Capital Corporation (NYSE: RC) announced that it is commencing an underwritten public offering of baby bond senior unsecured notes due 2026.
    The pricing is for $50 million at 6.20% and a Green Shoe of an additional $7.5 is available to the underwriters.

    i protegere eos qui se protegere non,

  2. 2C…the 6.5% Ready Capital notes performed well during the big down turn last fall, barely dipping below par. I never looked closely at their 7% notes because they seemed to pricey. I’ll likely be a buyer of their new notes when issued.

    1. XWords,
      ENR-A is certainly trading in lock-step with the common ENR. Since the IPO of ENR-A, it’s down about 15% and thus so is this convertible pfd. Glad I steered clear of this one. Unless the common turns around – this is going to be a tough one to SWAN with despite the good yield.

    2. This is an example of where a preferred has been designed with more attributes of a stock than a bond.

  3. Ready Capital is a small business lender which recently completed a merger with Owens Reality Mortgage, and in the process picked up an REO portfolio which they are quickly selling off. Properties include some luxury condos in the Lake Tahoe area. I own some of the 6.5% notes (RCP) and have been satisfied with their performance.

    1. CW, I also own some of these notes but have been lightening up on my position as I’m calculating yield to maturity at about 4.9% (assuming I’ve calculated correctly). I will be interested in seeing what the rate will be on the new notes.
      Having just driven back from Tahoe today I can vouch for the astonishingly high real estate prices there!

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