New York-based asset manager Rhythmic Capital, the owner of a multichannel lender Nieuwrezannounced Tuesday that it plans to raise money for “general corporate purposes” by selling up to 34.5 million shares of its common stock to investors in a public offering.
The company said underwriters will from time to time offer shares in negotiated transactions or prevailing market prices at the time of sale. At current market prices, the offering would net the company approximately $395 million, without taking into account the costs of the public offering.
Rithm said proceeds from the offering will go to general corporate purposes, which may include future acquisitions, investments or debt repayments.
Rithm Capital, previously a real estate investment trust (REIT), has shifted course to asset manager, resulting in the acquisition of Sculptor Capital Management for $719.8 million in November 2023 and a deal with Great Ajax Corp. in June 2024.
The company closed a deal in the mortgage field Computershare Mortgage Services Inc. for $720 million in October 2023, including the purchase of Specialized Loan Servicing LLC.
Rithm is offering 30 million shares of common stock, depending on market conditions, but will give investors the opportunity to purchase an additional 4.5 million shares over 30 days.
Rithms shares closed at $11.81 on Tuesday, up 0.25% from the day before. But in the hours after the market closed, when the offering became public, the stock fell more than 3%.
Six banks are joint bookrunning managers for the offering, including Citi Group, Goldman Sachs, JP Morgan, UBS Investment Bank, BTIG And Wells Fargo Securities.
At the end of June, Rithm had $1.5 billion in cash and liquidity.
According to documents at the Securities and Exchange Commission (SEC), the company announced GAAP net income of $213.2 million in the second quarter of 2024, compared to $261.6 million in the previous quarter.
Earlier this year, the company issued $775 million in senior unsecured notes due 2029 to qualified institutional buyers.
