Holders may convert the Series B Preferred Stock into shares of our common stock subject to certain conditions. The conversion rate will initially be 2.3809 shares of common stock per share of Series B Preferred Stock and is equivalent to an initial conversion price of $10.50 per share of common stock, which represents a 17.85% premium over $8.91 per share, the last reported sales price of our common stock on January 25, 2007. The conversion rate will be subject to adjustment upon the occurrence of specified events. See ÙDescription of Series B Preferred Stock?Conversion Rightsˆ beginning on page S-27 of this prospectus supplement.
If certain fundamental changes occur, holders may require us in certain circumstances to repurchase all or part of their Series B Preferred Stock. See ÙDescription of Series B Preferred Stock?Purchase of Series B Preferred Stock Upon a Fundamental Changeˆ beginning on page S-33 of this prospectus supplement. In addition, if a holder elects to convert the Series B Preferred Stock in connection with a fundamental change, we will pay, to the extent described in this prospectus supplement, a make whole premium by increasing the conversion rate applicable to such Series B Preferred Stock. See ÙDescription of Series B Preferred Stock?Adjustment to Conversion Rate Upon Certain Fundamental Changesˆ beginning on page S-32 of this prospectus supplement.
On or after January 25, 2012, we may, at our option, cause the Series B Preferred Stock to be automatically converted into that number of shares of common stock that are issuable at the then prevailing conversion rate. We may exercise our conversion right only if, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), the closing price of our common stock equals or exceeds 130% of then prevailing conversion price of the Series B Preferred Stock. Investors in our Series B Preferred Stock will generally not have voting rights, but will have limited voting rights if we fail to pay dividends for six or more quarters (whether or not consecutive) and under certain other circumstances.
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Ready Capital is a real estate finance company that originates, acquires, finances, and services small to medium balance commercial (SBC) loans, Small Business Administration loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized by SBC loans, or other real estate-related investments. Co.'s segments are: SBC Lending and Acquisitions, which originates SBC loans across the life-cycle of an SBC property including construction, bridge, stabilized and agency loan origination channels; Small Business Lending, which acquires, originates and services owner-occupied loans; and Residential Mortgage Banking, which originates residential mortgage loans. Preferreds: RC.PRB, RC.PRC, RC.PRD, RC.PRE Open the RC Information Page » |
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