By Paul A. Harris
Portland, Ore., March 5 – Rithm Capital Corp. priced a $775 million issue of 8% five-year senior notes (B3/B-) at 98.981 to yield 8¼% on Tuesday, according to market sources.
The yield printed in the middle of yield talk in the 8¼% area. Initial guidance was in the mid-8% area.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, UBS Securities LLC, BTIG LLC and Stifel Nicolaus & Co. Inc.
The New York-based financial services company plans to use the proceeds for general corporate purposes and to fund a partial tender offer for up to $275 million of its 6¼% senior notes due 2025.
| Issuer: | Rithm Capital Corp.
|
| Amount: | $775 million
|
| Issue: | Senior notes
|
| Maturity: | April 1, 2029
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, UBS Securities LLC, BTIG LLC and Stifel Nicolaus & Co. Inc.
|
| Coupon: | 8%
|
| Price: | 98.981
|
| Yield: | 8¼%
|
| Spread: | 412 bps
|
| First call: | April 1, 2026 at 104
|
| Trade date: | March 5
|
| Settlement date: | March 19
|
| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
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