Terms

Series

6.50% Series E Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.5%

Rate Type

Fixed

Annual Dividend

$1.62

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

June 10, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Class Or Series Of Capital Stock Expressly Designated As Senior To Series E Preferred Stock; Pari Passu With: Series B Preferred Stock (8.625%), Series C Preferred Stock (6.25% Cumulative Convertible), Series D Preferred Stock (7.625%), Any Other Parity Stock; Senior To: Common Stock, Junior Stock (Any Class Or Series Expressly Designated As Junior)

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

Ready Capital Corporation (NYSE: RC), a Maryland-incorporated multi-strategy REIT, is offering 4,000,000 shares of its 6.50% Series E Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, yielding $1.625 per share annually ($0.40625 per quarter). These are direct preferred shares — not depositary receipts. The preferred stock is perpetual with no stated maturity, and the first optional redemption date is June 10, 2026, at $25.00 per share. Dividends are cumulative, meaning any unpaid dividends accumulate and must be paid in full before the company can pay dividends on its common stock or other junior securities. The Series E Preferred Stock ranks senior to Ready Capital's common stock and any designated junior stock, pari passu with the outstanding Series B (8.625%), Series C (6.25% Convertible) and Series D (7.625%) preferred shares, and junior to all existing and future indebtedness of the company. As a holding company issuer, the preferred stock is structurally subordinated to all obligations of operating subsidiaries. There is no regulatory capital (Tier 1) call provision, but the company retains a special optional redemption right exercisable within 120 days of a Change of Control at $25.00 plus accrued dividends, which would preempt holders' change-of-control conversion rights. REIT ownership restrictions limit any single holder to 9.8% of Series E shares. At the $25.00 offering price, the effective yield is 6.50% per annum. Dividends are payable quarterly on or about January 31, April 30, July 31, and October 31, with record dates set 10–90 days before each payment date. As a REIT, Ready Capital's distributions typically do not qualify for the 15%/20% qualified dividend income (QDI) rate for individual investors or the dividends-received deduction (DRD) for corporate holders; a portion may be characterized as ordinary income or return of capital depending on the company's earnings and profits each year. The dividend stopper mechanism prevents payment of any dividends on common or parity/junior preferred stock until all accumulated Series E dividends are current, providing meaningful protection against dividend subordination.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Ready Capital has not paid full cumulative dividends on the Series E Preferred Stock for all past periods, it is blocked from paying dividends on or repurchasing its common stock and any other junior or parity preferred stock, subject to limited exceptions.

Other Preferreds from Ready Capital Corp

Div Score Breakdown

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