Rithm Capital Establishes New Series F Preferred Stock for Substantial Capital Raise

summarizeSummary

Rithm Capital Corp. has authorized a new class of 8.750% Series F Preferred Stock, which will be senior to common stock and used for a substantial capital raise.

check_boxKey Events

• New Preferred Stock Series Established

  Rithm Capital Corp. filed a Certificate of Designations to create 11,500,000 shares of 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock.

• Substantial Capital Raise

  The company is publicly offering 10,000,000 shares (plus an option for 1,500,000 additional shares) of this new preferred stock, with a liquidation preference of $25.00 per share, representing a significant capital raise.

• Senior Ranking and Fixed Dividend

  The Series F Preferred Stock ranks senior to the company's common stock for dividend payments and liquidation rights, carrying a cumulative cash dividend of 8.750% per annum until February 15, 2031, after which the rate will reset.

auto_awesomeAnalysis

This filing details the creation of a new class of preferred stock, the 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock, which is being offered to raise capital. The new preferred stock ranks senior to common stock for dividends and liquidation, introducing a significant fixed dividend obligation for the company. While providing capital, this issuance is dilutive to common shareholders' claims on future earnings and assets.