Ready Capital Corporation announced the pricing of $225.0 million in aggregate principal amount of 10.00% Senior Secured Notes due 2031 through its subsidiary, ReadyCap Holdings II, LLC. The notes were priced at 99.5% of their principal amount and are scheduled to close on September 28, 2026. The transaction is structured as a private placement under Section 4(a)(2) of the Securities Act of 1933, available to a limited number of institutional accredited investors.
Proceeds from the issuance, along with other available sources, will be used to redeem the entire $350.0 million outstanding aggregate principal amount of 4.50% Senior Secured Notes due 2026. The redemption will be executed by ReadyCap Holdings, LLC at a price equal to 100% of the principal amount plus accrued and unpaid interest. The redemption is intended to complete a balance sheet repositioning initiative announced in the fourth quarter of 2025.
The new notes are senior secured obligations guaranteed by Ready Capital Corporation and several of its subsidiaries, including Sutherland Asset I, LLC and ReadyCap Holdings, LLC. The obligations are secured by a first-priority lien on certain equity interests and assets of the issuer. The offering is being managed by Piper Sandler & Co., with Alston & Bird LLP serving as legal counsel for the company.
Following the redemption, Ready Capital expects its sole remaining corporate debt maturity in 2026 to be $100.0 million due in November. The company stated that it intends to shift its focus from liquidity generation to earnings growth, planning to deploy capital into originations across its commercial real estate debt and small business lending platforms.
