Terms

Series

6.25% Series C Cumulative Convertible Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.25%

Rate Type

Fixed

Annual Dividend

$1.56

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

No

Capital Stack Ranking

Junior To: Equity Securities Expressly Designated As Senior To Series C Preferred Stock, All Indebtedness And Debt Obligations Of The Corporation; Pari Passu With: Series A Preferred Stock, Other Parity Stock (Other Preferred Series Designated As Ranking On Parity); Senior To: Common Stock, Equity Securities Expressly Designated As Junior To Series C Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

779,743

Prospectus Summary

Ready Capital Corporation (a mortgage REIT) issued 779,743 shares of its 6.25% Series C Cumulative Convertible Preferred Stock with a $25.00 liquidation preference per share, paying a fixed annual dividend of $1.5625 per share ($0.390625 quarterly) accruing from January 15, 2021. These are direct preferred shares (not depositary shares). The series is cumulative, meaning missed dividends accumulate and must be paid in full before any distributions are made to common or junior preferred stockholders — unpaid dividends do not disappear. Notably, shares are not redeemable by the Corporation or at holders' option; instead, the security is convertible into cash and common stock. Series C Preferred Stock ranks senior to Ready Capital's common stock and any junior-designated equity, pari passu with Series A Preferred Stock and other parity preferred series, and junior to any equity securities contractually designated as senior as well as all debt obligations of the Corporation. As a holding company issuer, preferred holders are structurally subordinated to creditors of operating subsidiaries. There is no regulatory capital call provision. However, holders have a repurchase right (at 100% of liquidation preference plus accrued dividends) upon a 'fundamental change,' defined as a change of control (50%+ voting power acquisition, merger, or plan of liquidation) or termination of trading of the common stock. At par, the effective yield is 6.25% annually. Because Ready Capital is a REIT, dividends are generally characterized as ordinary income (REIT pass-through distributions) rather than qualified dividend income, meaning they typically do not qualify for the preferential 15%/20% QDI tax rate for individual investors or the dividends-received deduction for corporate holders. Dividends are paid quarterly on January 15, April 15, July 15, and October 15, with record dates on the last day of March, June, September, and December respectively. The dividend stopper prevents any common or junior/parity preferred dividend payments until all accumulated Series C dividends are current.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative dividends on the Series C Preferred Stock have not been paid, the Corporation is blocked from paying dividends on or repurchasing common stock or any junior or parity preferred stock.

Other Preferreds from Ready Capital Corp

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 38 (Weak)