New Residential Investment Corp. has priced a public common stock offering whose proceeds will be used to
Altogether, New Residential had priced the offering to receive gross proceeds of $284 million. The underwriters, however, may offer shares through negotiated transactions at the market price at the time of sales, which currently is $14.07, at prices related to the prevailing market price or at a negotiated price.
New Residential expects the offering to close on Aug. 16, pending closing conditions. The company has also granted the offering's underwriters a 30-day option to purchase up to 3 million additional shares.
The company plans to use the offering's net proceeds to fund part of its acquisition of conventional mortgage servicing rights from Walter Investment Management Corp. with $33 billion in unpaid principal balance and nearly all of the assets of Walter Capital Opportunity including MSRs of $35 billion in unpaid principal balance.
The remainder is expected to be used for general corporate purposes, and if the Walter deals fall through then that money would go toward the same, including additional investments.
Citigroup, Barclays, JPMorgan and UBS Investment Bank are underwriters for the offering.
