Rithm Capital plans to sell $775 million five-year notes on Tuesday; initial talk mid-8% area

By Paul A. Harris

Portland, Ore., March 4 – Rithm Capital Corp. plans to price a $775 million offering of senior notes due 2029 (expected ratings B3/B-) on Tuesday, according to market sources.

Initial guidance has the deal coming to yield in the mid-8% area.

The Rule 144A and Regulation S for life five-year notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

Citigroup Global Markets Inc. is the left bookrunner. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, UBS Securities LLC, BTIG LLC and Stifel Nicolaus & Co. Inc. are the joint bookrunners.

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.

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