NEW YORK, Jan. 30, 2018 /PRNewswire/ -- Sutherland
Asset Management Corporation (the "Company") (NYSE: SLD)
announced today that ReadyCap Holdings, LLC ("ReadyCap"), the
Company's wholly-owned subsidiary that operates its small balance
commercial loan origination segment, has issued $40.0 million in aggregate principal amount of
7.50% Senior Secured Notes due 2022 (the "Notes") priced with a
yield to par call date of 6.50%. The Notes have identical terms
(other than issue date and issue price) to the notes issued on
February 13, 2017 and June 13, 2017. The net proceeds of the offering
are intended to be used to acquire and originate new assets for
general business purposes. Keefe, Bruyette & Woods, A
Stifel Company, and Sandler O'Neill + Partners, L.P. acted as
joint book-running managers of the offering.
"We are pleased to raise additional capital to pursue our small
balance commercial loan ("SBC loan") origination and
acquisition strategies," said Thomas
Capasse, the Chief Executive Officer of the Company.
The Notes are senior secured obligations of ReadyCap. Payments
of the amounts due on the Notes are fully and unconditionally
guaranteed (the "Guarantees") by the Company, Sutherland Partners,
L.P. (the "Operating Partnership"), Sutherland Asset I, LLC (the
"Direct Parent") and ReadyCap Commercial, LLC, a wholly-owned
subsidiary of ReadyCap ("RCC," and together with the Company, the
Operating Partnership and the Direct Parent, the "Guarantors," and
each a "Guarantor").
Interest on the Notes is payable semiannually on each
February 15 and August 15, beginning on February 15, 2018. The Notes will mature on
February 15, 2022, unless redeemed or
repurchased prior to such date.
ReadyCap may redeem the Notes prior to November 15, 2021, at its option, in whole or in
part at any time, at a price equal to 100% of the outstanding
principal amount thereof, plus the applicable "make-whole" premium
as of, and unpaid interest, if any, accrued to, the redemption
date.
On and after November 15, 2021,
ReadyCap may redeem the Notes, at its option, in whole or in part
at any time, at a price equal to 100% of the outstanding principal
amount thereof plus unpaid interest, if any, accrued to the
redemption date.
ReadyCap's and the Guarantors' respective obligations under the
Notes and the Guarantees are secured by a perfected first-priority
lien on the capital stock of ReadyCap and RCC and certain other
assets owned by certain of the Company's subsidiaries.
The Notes were offered only to (1) qualified institutional
buyers in reliance on Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"), (2) institutional investors
that qualify as accredited investors, as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act, and (3)
non-U.S. persons in offshore transactions in accordance with
Regulation S under the Securities Act. The Notes are subject to
restrictions on transfer and may only be offered or sold in
transactions exempt from, or not subject to, the registration
requirements of the Securities Act and other applicable securities
laws.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall it
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale is unlawful.
About Sutherland Asset Management Corporation
Sutherland Asset Management Corporation (NYSE: SLD) is a REIT
that originates, acquires, finances, services and manages small
balance commercial ("SBC") loans, U.S. Small Business
Administration loans under its Section 7(a) program, and
residential mortgage loans. The Company originates SBC loans
through its ReadyCap subsidiaries and originates residential
mortgage loans through its GMFS subsidiary. The Company is
externally managed and advised by Waterfall Asset Management,
LLC.
This press release contains statements that constitute
"forward-looking statements," as such term is defined in Section
27A of the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, and such statements are intended
to be covered by the safe harbor provided by the same. These
statements are based on management's current expectations and
beliefs and are subject to a number of trends and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements; the Company can give
no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from the Company's
expectations include, but are not limited to, availability of
suitable investment opportunities; changes in interest rates;
changes in the yield curve; changes in prepayment rates; the
availability and terms of financing; general economic conditions;
market conditions; conditions in the market for mortgage-related
investments; legislative and regulatory changes that could
adversely affect the business of the Company; and other factors,
including those set forth in the Risk Factors section of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2016 and other reports
filed by the Company with the SEC, copies of which are available on
the SEC's website, www.sec.gov. The Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
Contact
Investor Relations
Sutherland Asset Management
212-257-4666
SutherlandIR@waterfallam.com
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SOURCE Sutherland Asset Management Corporation
