Adamas Trust Issues $90M 9.600% Senior Notes Due 2031

What Happened
Adamas Trust, Inc. announced on August 14, 2026 that it completed a public offering of $90.0 million aggregate principal amount of 9.600% Senior Notes due October 1, 2031. The notes were issued at 100% of par under the company’s Form S-3 registration and an underwriting agreement dated August 11, 2026 (led by Morgan Stanley and others). The company granted the underwriters a 30‑day option to purchase up to an additional $13.5 million to cover over‑allotments. Interest is 9.600% per year, payable quarterly beginning October 1, 2026; the notes are redeemable, in whole or in part, on or after October 1, 2028. The net proceeds are expected to be approximately $86.6 million and are intended for general corporate purposes, which may include acquiring targeted assets and/or repaying existing indebtedness.

Key Details

• Offering amount: $90.0 million principal; underwriters have a 30‑day overallotment option of up to $13.5 million.
• Interest & maturity: 9.600% annual interest, payable quarterly; maturity date October 1, 2031.
• Price & proceeds: Issued at 100% of principal; estimated net proceeds ≈ $86.6 million after fees and expenses.
• Claim on assets: Notes are senior unsecured obligations, ranking equal to the company’s other unsecured debt and structurally subordinated to liabilities of its subsidiaries.

Why It Matters
This financing increases Adamas Trust’s long‑term debt and will create ongoing cash interest obligations at a relatively high coupon (9.6% annually), which affects the company’s interest expense and cash flow needs. The proceeds give the company flexibility for acquisitions or debt repayment, but investors should note the notes are unsecured and rank behind any secured creditors and ahead of subordinated instruments only to the extent described. The issuance may also affect the company’s future financing options and leverage profile.