Rithm Capital Announces the Closing of Securitized Notes Backed by Mortgage Servicing Rights
November 14 2024 - 4:15PM
Business Wire
$461 Million Non-Recourse Fixed Note Offering
Represents Another Innovation in MSR Financing
Rithm Capital Corp. (NYSE: RITM, “Rithm Capital” or “Rithm”), a
leading sponsor of structured MSR-backed capital market notes,
today announced it has successfully closed NZES 2024-FNT1, a $461
million securitized financing note backed by mortgage servicing
rights (“MSRs”).
Leveraging Rithm’s scale, strong servicing performance and
high-quality collateral, this first-of-its-kind, single-tranche
non-recourse transaction provides fixed financing over the term of
the expected life of the assets of 3 years. The $461 million
transaction was over-subscribed and represents a significant
increase from an initial $378 million offering size, driven by
strong demand for the securitization’s unique structure and
underlying asset portfolio.
“As a pioneer in investing in mortgage servicing rights, Rithm
leverages its deep market insights and operating expertise to bring
the benefits of this attractive asset class to more investors,”
said Michael Nierenberg, Chief Executive Officer of Rithm Capital.
“This novel transaction is a testament to the strength and breadth
of the Rithm platform and to our attractive portfolio of MSR
assets. We are thrilled to see such strong demand for this
securitization from a broad range of investors, and we look forward
to extending our leadership across the mortgage industry.”
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are not
historical facts. They represent management’s current expectations
regarding future events and are subject to a number of trends and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those described in
the forward-looking statements. Accordingly, you should not place
undue reliance on any forward-looking statements contained herein.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections
entitled “Cautionary Statement Regarding Forward Looking
Statements,” “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s most recent annual and quarterly reports and other
filings filed with the U.S. Securities and Exchange Commission,
which are available on the Company’s website (www.rithmcap.com).
New risks and uncertainties emerge from time to time, and it is not
possible for Rithm Capital to predict or assess the impact of every
factor that may cause its actual results to differ from those
contained in any forward-looking statements. Forward-looking
statements contained herein speak only as of the date of this press
release, and Rithm Capital expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Rithm
Capital's expectations with regard thereto or change in events,
conditions or circumstances on which any statement is based.
ABOUT RITHM CAPITAL
Rithm Capital is a global asset manager focused on real estate,
credit and financial services. Rithm makes direct investments and
operates several wholly-owned operating businesses. Rithm’s
businesses include Sculptor Capital Management, Inc., an
alternative asset manager, as well as Newrez LLC and Genesis
Capital LLC, leading mortgage origination and servicing platforms.
Rithm Capital seeks to generate attractive risk-adjusted returns
across market cycles and interest rate environments. Since
inception in 2013, Rithm has delivered approximately $5.6 billion
in dividends to shareholders. Rithm is organized and conducts its
operations to qualify as a real estate investment trust (REIT) for
federal income tax purposes and is headquartered in New York
City.
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RITHM CAPITAL Investor Relations 212-850-7770
ir@rithmcap.com
MEDIA Sarah Salky / Erik Carlson Joele Frank, Wilkinson
Brimmer Katcher (212) 355-4449 ritm-jf@joelefrank.com
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