Rithm Capital's Strategic Transaction with Great Ajax

Rithm Capital Announces Strategic Transaction with Great Ajax

Global asset manager Rithm Capital has recently revealed a significant move in the world of finance by entering into a strategic transaction with real estate investment trust Great Ajax.

Terms of the Deal

Great Ajax has secured a one-year term loan agreement amounting to $70 million with one of Rithm's subsidiaries. The purpose is to utilize borrowings under the term loan and other assets to repay its existing convertible notes.

Management Agreement and Strategic Shift

In addition to the loan agreement, Great Ajax is set to further its collaboration with Rithm by entering into a management agreement with one of its affiliates. This external management partnership aims to support Great Ajax in navigating through commercial real estate investment opportunities and shifting its strategic direction.

Additional Components of the Deal

As part of the transaction, Great Ajax will issue five-year warrants to Rithm, allowing them to exercise shares of Great Ajax's common stock. Furthermore, through a securities purchase agreement, Great Ajax will issue $14 million worth of its common stock to Rithm.

Closing Details

While the specifics of the deal are outlined, it is important to note that the completion of the purchase, along with other key elements, hinges on approval from Great Ajax stockholders.