Rithm Capital Corp. Announces $250M Preferred Stock Offering for Investments and General Corporate Purposes

summarizeSummary

Rithm Capital Corp. is raising approximately $242.1 million in net proceeds through the sale of 10 million shares of 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock, with an option for additional shares, to fund investments and general corporate purposes.

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, with a liquidation preference and public offering price of $25.00 per share.

• Over-Allotment Option

  Underwriters have a 30-day option to purchase up to an additional 1,500,000 shares of Series F Preferred Stock.

• Capital Raised

  The offering is expected to generate approximately $242.1 million in net proceeds (before expenses), potentially increasing to $278.4 million if the over-allotment option is fully exercised.

• Use of Proceeds

  The company intends to use the net proceeds from this offering for investments and general corporate purposes.

auto_awesomeAnalysis

Rithm Capital Corp. has entered into an underwriting agreement to issue a new series of preferred stock, which is a significant capital event. The offering of 10 million shares, with an option for an additional 1.5 million, represents a substantial capital raise for the company. While preferred stock offerings provide capital, they also introduce new dividend obligations and can be dilutive to common shareholders, particularly if the preferred shares are convertible into common stock, as indicated by the 'Conversion Right' details. The proceeds are earmarked for general corporate purposes and investments, which could support growth or strengthen the balance sheet.