Ready Capital Corporation Announces $220.0 Million Private Placement of Senior Secured Notes
On February 21, 2025, Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”), through its indirect subsidiary ReadyCap Holdings, LLC (“ReadyCap”), successfully closed a private placement of $220.0 million in aggregate principal amount of 9.375% Senior Secured Notes due 2028 (the “Notes”).
Key Details of the Private Placement
The Notes are senior secured obligations of ReadyCap. Payments of the amounts due on the Notes are fully and unconditionally guaranteed at issuance by the Company, Ready Capital Partners I, LLC, Ready Capital Subsidiary REIT II, LLC (“SubREIT II”), RCSR I Investments, LLC (“RCSR I”), RCSR II Investments, LLC (“RCSR II”), and RCSR I Intermediate Holdings, LLC (collectively, the “Guarantors”). ReadyCap’s and the Guarantors’ respective obligations under the Notes and the Guarantees are secured by a first-priority lien on the assets of RCSR I and RCSR II and the capital stock of RCSR I, RCSR II, SubREIT II, and certain other subsidiaries of the Company.
Impact on Ready Capital
This private placement will provide ReadyCap with additional financial resources to further grow its business. The proceeds from the offering will be used for general corporate purposes, which may include funding new investments and repaying existing debt. This move is expected to strengthen ReadyCap’s financial position and enhance its ability to capitalize on investment opportunities in the commercial real estate market.
Impact on Individuals and the World
For individuals, this private placement may not have a direct impact, as it is a corporate financial transaction. However, the funds raised could contribute to the growth of commercial real estate projects, which may indirectly lead to job creation and economic growth in local communities. Additionally, the successful execution of the private placement demonstrates investor confidence in Ready Capital’s business model and growth prospects.
Global Implications
On a larger scale, the private placement is indicative of the continued strong demand for investment-grade debt securities, particularly in the real estate sector. This trend is expected to continue, as investors seek stable returns amidst ongoing economic uncertainty. Furthermore, the transaction underscores the resilience of the commercial real estate market, which has shown signs of recovery following the pandemic-induced downturn.
- Investor confidence in Ready Capital’s business model and growth prospects
- Continued strong demand for investment-grade debt securities in the real estate sector
- Resilience of the commercial real estate market
Conclusion
Ready Capital’s successful private placement of $220.0 million in Senior Secured Notes demonstrates the Company’s strong financial position and its ability to capitalize on investment opportunities in the commercial real estate market. The transaction is expected to provide ReadyCap with additional resources to fuel growth and enhance its financial flexibility. While the impact on individuals and the world may be indirect, the private placement underscores the continued investor demand for high-quality debt securities in the real estate sector and the resilience of the commercial real estate market.
This information is intended to be used for informational purposes only and should not be considered as investment advice. For more information on Ready Capital Corporation, please visit their official website.
