Anworth Mortgage Asset Corporation to Be Acquired by Ready Capital Corporation
Anworth Mortgage Asset Corporation is a former mortgage real estate investment trust that was acquired by Ready Capital Corporation. The transaction is expected to close in 2021. Before the acquisition, Anworth had a market value of $1.06 billion. Ready Capital Corporation is a leading real estate investment manager. Its acquisition will help it to achieve a higher valuation for its portfolio of assets. The company will continue to provide investors with a stable return on their investments.
Ready Capital Corporation
The merger of Ready Capital and Anworth is expected to close in the first quarter of 2021. The merger will create one of the largest mortgage REITs in the country. The combined company will be headquartered in New York. The new company will have an expanded board of directors, comprised of seven directors from Ready Capital and one independent director from Anworth’s current board. Among the key benefits of this transaction is that Ready Capital will be in a stronger position to grow and improve efficiency.
As previously disclosed, the company will convert its outstanding Series B Cumulative Convertible Preferred Stock (par value of $0.01) into newly designated Ready Capital preferred stock with a par value of $0.0001 per share. The newly issued series C preferred stock will be named “Ready Capital’s Series C Preferred Stock.”
Anworth was founded in 1997. The company’s portfolio consists of investments in mortgage-backed securities sponsored by federal entities. The merger of Ready Capital and Anworth will create a multi-strategy real estate finance company with a pro forma equity capital base of $1 billion. The combined company will have more than 500 lending professionals in the U.S. and overseas. The combined company is externally managed by Waterfall Asset Management, LLC.
The transaction will require preparation of a joint proxy statement/prospectus and registration statement with the SEC. The documents will contain important information about the transaction and related matters. Ready Capital and Anworth stockholders should carefully review these documents. Before voting, it is essential to understand what will happen to their investments. If you are interested in the merger, read the registration statement and prospectus carefully. In addition, you should review the Anworth joint proxy statement/prospectus and any other documents related to the merger.
This press release contains forward-looking statements. The statements are based on the expectations of management today and are subject to certain risks and uncertainties. Anworth and Ready Capital do not undertake any obligation to update such statements after their release date. Therefore, you should not rely on these forward-looking statements. If you choose to purchase shares in Ready Capital, you should understand that the statements made are subject to change. In addition, you should understand that there is no guarantee that you will receive the outcomes or benefits that you have anticipated.
The merger is expected to add value to the company. The combined company will have a pro forma equity capital base of over $1 billion. The combined company will retain its existing name and continue trading on the New York Stock Exchange. Its management is Waterfall Asset Management, LLC. After the merger, Ready Capital’s stock will continue to trade under the existing ticker symbol, “RC.”
