Rithm
Capital,
a

New
York-based
asset
manager
with
a
focus
on
real
estate
—
and
the
parent
of
multichannel
lender Newrez

—
is
the
latest
company
in
the
mortgage
space
to
issue
debt. 

Rithm
is
joining
a
list
that
includes
competitors Mr.
Cooper
Group,



Freedom
Mortgage, PennyMac
Mortgage
Investment
Trust and Pennymac
Financial
Services,
each
of
which
have
issued
debt
since
September
2023.

On
Monday,
Rithm
announced
its
plan
to
offer
$775
million
in
senior
unsecured
notes
due
in
2029
for
qualified
institutional
buyers.

The
company
said
that
the
proceeds
will
be
used
to
reduce
indebtedness.
The
debt
issuance
include
a
cash
tender
offer
announced
Monday
to
purchase
up
to
$275
million
of
Rithm’s
$550
million
in
outstanding
senior
unsecured
notes,
priced
at
6.25%
and
due
in
2025.

The
tender
offer
will
expire
on
April
1
unless
it
is
extended
or
terminated
early
by
the
company. 

The
remainder
of
the
net
proceeds
will
be
used
for
“general
corporate
purposes,”
the
company
said
in
a
statement
that
did
not
provide
further
details.

Analysts anticipated
that
mortgage
companies
would
issue
debt
in
an
attempt
to
improve
liquidity
and
fund
their
business
and
investment
activities,
specifically
by
targeting
mortgage
servicing
rights
(MSR)
deals.

Rithm
posted $532.7
million in
GAAP
net
income
in
2023.
Last
year
was
marked
by
its
purchase
of
consumer
loans
from Goldman
Sachs,
as
well
as
the
acquisitions
of Sculptor
Capital
Management and Computershare
Mortgage
Services,
including Specialized
Loan
Servicing (SLS).

In
February,
the
company
announced
that
it
would
issue
a
one-year
loan,
purchase
common
stock
and
become
the
external
manager
of
its
peer, Great
Ajax
Corp.

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