Rithm Capital Corp. Announces $250M Preferred Stock Offering with 8.750% Dividend

summarizeSummary

This significant preferred stock offering provides Rithm Capital Corp. with substantial capital, bolstering its financial flexibility and supporting its operations. While the 8.750% fixed dividend rate represents a notable cost of capital, the successful raise demonstrates the company's ability to access funding in the market. Investors should monitor the use of proceeds and the impact of the new preferred shares on the company's overall capital structure and dividend coverage for common shareholders.

check_boxKey Events

• Preferred Stock Offering

  Rithm Capital Corp. is offering 10,000,000 shares of 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock at a public offering price of $25.00 per share.

• Significant Capital Raise

  The offering is expected to generate approximately $242.1 million in net proceeds for the company, before estimated offering expenses, providing substantial financial resources.

• High Dividend Rate

  The preferred stock carries an initial fixed dividend rate of 8.750% per annum until February 15, 2031, after which it will reset based on the five-year treasury rate plus 5.009%.

• Perpetual Security

  The Series F Preferred Stock is perpetual, unless redeemed by the Issuer, and will be listed on the NYSE under the symbol RITM PR F.

auto_awesomeAnalysis

This significant preferred stock offering provides Rithm Capital Corp. with substantial capital, bolstering its financial flexibility and supporting its operations. While the 8.750% fixed dividend rate represents a notable cost of capital, the successful raise demonstrates the company's ability to access funding in the market. Investors should monitor the use of proceeds and the impact of the new preferred shares on the company's overall capital structure and dividend coverage for common shareholders.