mREIT Rithm Property Trust has announced they will be selling a new fixed-to-floating rate preferred.
This issue will have an early redemption available to the company in 2030.
The preliminary prospectus can be read here.
J was on top of this one just a bit ago in reader alerts.
Users who liked this:
2 million shares of RITM-A are being called on March 28.
I think this is for RPT, not RITM
JMeek–yes of course you are correct–fixed it. Thanks
I assume that means they’ll be redeeming the juicy RITM-B that is currently paying ~10.5%…
When the Use Of Proceeds in the Offering prospectus says, “We intend to contribute the net proceeds from this offering to our Operating Partnership in exchange for Class C Preferred Units of our Operating Partnership, and our Operating Partnership will then use those proceeds for investments and general corporate and working capital purposes,” why would you assume that? No mention of intending to do any redeeming of anything from proceeds would make that less likely not more unless they already have the cash required to call, right?
And BTW, what JMeek says is accurate – this has nothing to do with RITM… It’s RPT.
This old dufus knew that and typed the wrong headline anyway
2White.. I have a simpler answer. RPT and RITM are completely different widgets! The pref is for RPT.
RITM is the manager for RPT and they share the same name.
RPT has $110m of expensive (9.875%) 2027 notes.. but I am not sure they will use the pref proceeds to repay it. Maybe they will use some to repay, but they really need to build up their investment port to build scale.