Ready Capital Secures $220 Million through Senior Notes Offering
Ready Capital Corporation Finalizes $220 Million Notes Offering
Ready Capital Corporation (NYSE: RC) has announced the successful closing of a significant private placement of senior secured notes, amounting to $220 million. This remarkable achievement took place on a recent date, with a major goal of bolstering its financial position and facilitating corporate strategies. The notes, carrying an interest rate of 9.375% and due by 2028, are a testament to the confidence investors have in the company’s ongoing strategy and market potential.
Utilization of Proceeds
The funds raised from this private placement are earmarked for crucial purposes, primarily aimed at repaying existing debt and furthering general operational requirements. This strategic move reflects Ready Capital's commitment to maintaining a robust balance sheet, which is essential for sustaining growth in the competitive landscape of real estate finance.
Role of Investment Firms
Piper Sandler & Co. played a pivotal role in facilitating this offering as the placement agent, ensuring that the process was executed efficiently. Additionally, prominent law firms, Alston & Bird LLP and Ropes & Gray LLP, provided legal counsel aiding in the compliance and structuring of this significant transaction. Such involvement from reputable firms further establishes the credibility behind this fundraising effort.
Understanding Senior Secured Notes
Senior secured notes are designed to carry a higher level of security compared to unsecured debt, as they are backed by specific assets of the issuing entity. In this case, the obligations under the notes are secured by a first-priority lien on the assets of various subsidiaries, enhancing the security for investors. This structure illustrates Ready Capital's commitment to safeguarding investor interests while optimizing its capital structure.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) operates as a multi-strategy real estate finance company, adept at originating, acquiring, financing, and servicing loans for commercial real estate. With a specialization in various sectors—including multifamily, construction, bridge financing, as well as loans backed by the U.S. Small Business Administration—Ready Capital stands out as a formidable player in the market.
Company’s Operational Landscape
Headquartered in New York, the company boasts a workforce of approximately 500 professionals dedicated to fostering relationships and exploring growth opportunities in the lower-to-middle-market sector. The external management by Waterfall Asset Management, LLC further enhances its operational capabilities, bringing expertise and strategic insight to its endeavors.
Frequently Asked Questions
What is the purpose of the recent notes offering by Ready Capital?
The primary aims of the notes offering are to repay existing debt and secure funds for general corporate purposes, strengthening the company's financial health.
How does investing in senior secured notes benefit investors?
Senior secured notes provide investors with a higher level of security due to being backed by specific assets, thus reducing risk in volatile market conditions.
Who acted as the placement agent for the notes offering?
Piper Sandler & Co. served as the placement agent for this notable offering, aiding in its successful execution.
What sectors does Ready Capital specialize in?
Ready Capital specializes in loans for various sectors, including agency multifamily, construction, bridge financing, and government guaranteed loans.
What is the significance of the interest rate on the notes?
The 9.375% interest rate on the senior secured notes reflects the market conditions and risk profile associated with the investment, offering attractive returns to investors.
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