New Residential Investment Corp. announced, in a press release [1], the launch of an opportunistic underwritten public offering of Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock (preferred stock), subject to market conditions.
The terms of the preferred stock are to be determined by negotiations between New Residential and the underwriters, the company reported. New Rez listed the preferred stock on the New York Stock Exchange under the symbol NRZ PR D.
The company expects to grant to the underwriters a 30-day option to purchase up to an additional 15% of the shares of the preferred stock being offered to cover over-allotments, if any, New Residential noted.
The company, which provides capital and services to the mortgage and financial services industry says it intends to use the net proceeds from this offering for investments and general corporate purposes.
New Residential's mission, according to company literature, "is to generate attractive risk-adjusted returns in all interest rate environments through a portfolio of investments and operating businesses."
New Residential says it has built a diversified, hard-to-replicate portfolio with high-quality investment strategies that have generated returns across different interest rate environments over time.
The company's investment portfolio is composed of mortgage servicing related assets, residential securities (and associated called rights) and loans, and consumer loans.
New Residential’s investments in operating entities include its mortgage origination and servicing subsidiary, Newrez, and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses that provide services that are complementary to the origination and servicing businesses and other portfolios of mortgage related assets.
According to New Residential, since 2013 it "has a proven track record of performance, growing, and protecting the value of its assets while generating attractive risk-adjusted returns and delivering over $3.7 billion in dividends to shareholders."
The New York City-based organization conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is managed by an affiliate of Fortress Investment Group.