Ready Capital Corp Prices $225M 10% Notes, Plans Redeem of 2026 Notes

What Happened
Ready Capital Corporation (through subsidiary ReadyCap Holdings II, LLC) announced a private placement pricing of $225.0 million aggregate principal of 10.00% Senior Secured Notes due 2031, expected to close on September 28, 2026. The New Notes will be senior secured obligations of the issuer and will be fully and unconditionally guaranteed at issuance by Ready Capital Corporation and four subsidiaries (including ReadyCap Holdings, LLC (RCH)). The New Notes and Guarantees are being sold in a private placement (unregistered) under Section 4(a)(2) of the Securities Act. Net proceeds are intended to be used, in part, by RCH to redeem its $350.0 million aggregate principal of 4.50% Senior Secured Notes due 2026 at 100% of principal plus accrued interest.

An escrow agreement dated September 17, 2026 shows purchasers deposited $223.9 million (reflecting a 99.5% issuance price) and the issuer deposited 30 days of interest on the New Notes into escrow; funds and documentation will be released on the expected September 28, 2026 closing if conditions are met. If the offering does not close by October 19, 2026, escrowed proceeds will be returned to purchasers and escrowed interest paid to them.

Key Details

• New Notes: $225.0 million principal, 10.00% coupon, due 2031; private placement to institutional accredited investors.
• Redemption target: RCH intends to redeem $350.0 million aggregate principal of 4.50% Senior Secured Notes due 2026 at 100% of principal plus accrued interest.
• Guarantees & security: Company and certain subsidiaries will guarantee obligations; obligations secured by first-priority lien on specified equity interests and issuer assets.
• Escrow mechanics: Purchasers deposited $223.9M on Sept 17, 2026 (99.5% issuance price); issuer deposited 30 days’ interest; closing conditional and subject to return of funds if not closed by Oct 19, 2026.

Why It Matters
This transaction creates a new, secured 10.00% long-term obligation and, if completed, would replace RCH’s maturing 4.50% notes due 2026, extending the debt maturity profile to 2031 while increasing the company’s interest rate on that portion of debt. For investors, the filing is material because it affects Ready Capital’s near-term refinancing, interest expense profile, and secured leverage; the escrow activity shows purchaser commitment but the closing (and related redemption) remains conditional. Monitor subsequent filings (e.g., closing or redemption notices) for confirmation that the offering and the RCH redemption were completed.