Adamas Trust Prices $90M Senior Notes at 9.6% — Debt Capital Raise
ADAM sits 57% above its 52-week low of $6.445.
Summary
Adamas Trust priced a $90 million senior notes offering at 9.6% due 2031, raising net proceeds of $87.2 million. The notes will list on Nasdaq under ADAMK.
Key Events · Financing and Capital Events · ADAM
-
$90M Senior Notes Priced
Adamas Trust priced $90 million of 9.600% senior notes due 2031 at $25.00 per unit, with an over-allotment option of up to $13.5 million.
-
Net Proceeds of $87.2M
After underwriting discounts, net proceeds to the issuer are approximately $87.2 million before expenses, to be used for general corporate purposes.
-
Nasdaq Listing Under ADAMK
The company intends to list the notes on the Nasdaq Global Select Market under the symbol ADAMK, with trading expected within 30 days.
-
Optional Redemption in 2028
The notes may be redeemed at the company's option on or after October 1, 2028 at 100% of principal plus accrued interest.
Analysis · ADAM · Real Estate & Construction
Adamas Trust is raising $90 million through a new series of senior notes due 2031, priced at a 9.6% coupon. The notes are issued at $25.00 per unit, with net proceeds of approximately $87.2 million before expenses. This debt offering follows a recent $250 million at-the-market equity program and a strong Q2 earnings report, suggesting the company is diversifying its capital structure to fund growth or refinance existing obligations. The relatively high coupon reflects current market conditions for REIT debt, but the fixed-rate structure locks in long-term financing. The notes will trade on Nasdaq under the symbol ADAMK, providing liquidity for investors.
At the time of this filing, ADAM was trading at $10.13 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $919.5M. The 52-week trading range was $6.45 to $10.36. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.