Ready Capital Corporation 6.20% Senior Notes due 2026: A Comprehensive Guide

Ready(1)6.20(1)CAPITAL(36)CORPORATION(69)

Are you considering investing in the Ready Capital Corporation 6.20% Senior Notes due 2026? If so, you've come to the right place. This article provides a comprehensive guide to understanding these notes, their features, and the potential benefits they offer to investors.

Understanding Ready Capital Corporation

Ready Capital Corporation is a financial services company that provides a variety of lending solutions to small and medium-sized businesses. The company's mission is to help businesses grow by providing them with the capital they need to succeed.

What are Senior Notes?

Senior notes are a type of corporate bond issued by companies to raise capital. These notes are considered "senior" because they have a higher priority in the event of a company's bankruptcy or liquidation compared to other types of debt, such as subordinated debt.

Key Features of the 6.20% Senior Notes due 2026

The Ready Capital Corporation 6.20% Senior Notes due 2026 have several key features that investors should be aware of:

• Coupon Rate: The notes have a fixed coupon rate of 6.20%, which means investors will receive interest payments of 6.20% of the principal amount annually.
• Maturity Date: The notes will mature on June 20, 2026, at which point the principal amount will be repaid to investors.
• Credit Rating: The notes have been assigned a credit rating of BBB- by Standard & Poor's, indicating that they are considered investment-grade securities.

Benefits of Investing in the 6.20% Senior Notes due 2026

Investing in the Ready Capital Corporation 6.20% Senior Notes due 2026 can offer several benefits:

• Regular Interest Payments: Investors will receive annual interest payments of 6.20% of the principal amount, providing a steady stream of income.
• Potential Capital Gains: If the notes are sold before maturity at a higher price than their purchase price, investors may realize a capital gain.
• Dividends: While the notes do not pay dividends, the interest payments can be considered a form of dividend income.

Case Study: Investing in the 6.20% Senior Notes due 2026

Let's consider a hypothetical scenario where an investor purchases $10,000 worth of the Ready Capital Corporation 6.20% Senior Notes due 2026 at their initial offering price. Assuming the investor holds the notes until maturity, they would receive:

• Annual Interest Payments: 620 (6.20% of 10,000)
• Principal Repayment: $10,000 at maturity

If the investor sells the notes before maturity at a higher price, they may also realize a capital gain.

Conclusion

The Ready Capital Corporation 6.20% Senior Notes due 2026 offer a unique investment opportunity for investors seeking regular income and potential capital gains. By understanding the key features and benefits of these notes, investors can make informed decisions about their investments.

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