Ready Capital Closes $220 Million Senior Secured Notes Private Placement

Ready Capital Corporation announced on February 21, 2025, that its indirect subsidiary, ReadyCap Holdings, LLC, completed a private placement of $220.0 million in aggregate principal amount of its 9.375% Senior Secured Notes due 2028. The transaction was structured as a senior secured borrowing, with the notes’ payment obligations fully and unconditionally guaranteed by the Company along with several affiliated guarantors, including Ready Capital Partners I, LLC; Ready Capital Subsidiary REIT II, LLC (“SubREIT II”); RCSR I Investments, LLC; RCSR II Investments, LLC; and RCSR I Intermediate Holdings, LLC.

The notes, which are secured by a first-priority lien on the assets of RCSR I and RCSR II as well as the capital stock of certain Company subsidiaries, are intended to be used primarily to repay existing indebtedness and for general corporate purposes. The Notes and their corresponding Guarantees are exempt from registration under the Securities Act of 1933 and applicable state securities laws, restricting their offers and sales in U.S. markets without an effective registration statement or qualifying exemption.

Additionally, the private placement was supported by investment banking services provided by Piper Sandler & Co., with legal counsel provided by Alston & Bird LLP for the Company and Ropes & Gray LLP for the placement agent. The details of the transaction were also highlighted in a press release issued by the Company on February 24, 2025, which was incorporated by reference into the recent SEC Form 8-K filing.

The closing of this transaction underscores Ready Capital’s ongoing efforts to optimize its capital structure and strategically deploy proceeds towards debt reduction and broader corporate objectives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ready Capital’s 8K filing here.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments.