Rithm Capital Corp. 8-K

What Happened

• Rithm Capital Corp. (RITM) announced on January 13, 2026 that it entered into an underwriting agreement with Morgan Stanley & Co. LLC (as representative) to sell 10,000,000 shares of its 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock.
• The Series F shares have a $0.01 par value and a $25.00 per-share liquidation preference, implying gross proceeds of approximately $250 million. The offering is expected to close on January 21, 2026, subject to customary conditions.

Key Details

• Offering size: 10,000,000 shares of Series F preferred stock (approx. $250,000,000 gross proceeds).
• Underwriter option: 30-day option to purchase up to an additional 1,500,000 shares (upsize potential of $37.5M).
• Terms: 8.750% fixed-rate reset cumulative redeemable preferred stock; par value $0.01; $25 liquidation preference per share.
• Use of proceeds: intended for new investments and general corporate purposes. The company agreed to customary indemnification and other standard underwriting terms.

Why It Matters

• This financing will raise capital (initially ~ $250M) that Rithm can deploy for investments or corporate needs, which can support growth or portfolio activity without issuing common equity.
• Preferred shares with an 8.750% dividend rate are a meaningful financing cost and will affect the company’s cash obligations and capital structure.
• The underwriter option to upsize the deal gives the company flexibility to raise more capital if demand is strong.