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.
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Amount: | $775 million
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Issue: | Senior notes
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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.
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Coupon: | 8%
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Price: | 98.981
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Yield: | 8¼%
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Spread: | 412 bps
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First call: | April 1, 2026 at 104
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Trade date: | March 5
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Settlement date: | March 19
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Ratings: | Moody’s: B3
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| S&P: B-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 8¼% area
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Marketing: | Roadshow
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