Loan & DebtMay 14, 2026, 04:53 PM
Rithm Capital Closes $500M Private Offering of 8.500% Senior Notes Due 2031
AI Summary
Rithm Capital Corp. has completed its previously announced private offering, closing on $500 million aggregate principal amount of 8.500% senior unsecured notes due 2031. These notes are senior unsecured obligations, ranking equally with existing senior unsecured debt and senior to subordinated debt, but effectively subordinated to secured obligations. The company intends to use the net proceeds for general corporate purposes, which may include the repayment of certain indebtedness.
Key Highlights
- Rithm Capital closed a private offering of $500 million aggregate principal amount of senior unsecured notes.
- The 2031 Senior Notes bear an interest rate of 8.500% per annum, payable semi-annually.
- The notes will mature on June 1, 2031.
- Company may redeem notes prior to June 1, 2028, with a "make-whole" premium.
- Redemption prices decline from 104.250% starting June 1, 2028, to 100.000% from June 1, 2030.
- Up to 40% of notes can be redeemed by June 1, 2028, from equity offerings at 108.500%.
- The Indenture limits certain indebtedness and requires Total Unencumbered Assets of not less than 120% of Unsecured Indebtedness.
- Net proceeds from the offering will be used for general corporate purposes, including debt repayment.