{"id":1004278718,"date":"2018-11-12T05:33:17","date_gmt":"2018-11-12T13:33:17","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004278718"},"modified":"2022-12-08T19:58:46","modified_gmt":"2022-12-09T03:58:46","slug":"ready-capital-owens-realty-mortgage-to-merge","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/ready-capital-owens-realty-mortgage-to-merge\/","title":{"rendered":"Ready Capital, Owens Realty Mortgage to Merge"},"content":{"rendered":"

By Gail Kalinoski<\/p>\n

\"\"<\/a>

Office and retail property in Manhattan\u2019s Soho submarket refinanced by Ready Capital<\/p><\/div>\n

Less than two months after changing its name and rebranding from Sutherland Asset Management Corp. to Ready Capital Corp. as part of a larger strategy to improve shareholder value, the New York City-based real estate finance company is taking another big step.  A merger with specialty finance REIT Owens Realty Mortgage that is expected to enhance shareholder liquidity and provide operating leverage across a larger equity base.<\/p>\n

The two firms have entered into a definitive merger agreement to combine in a stock-for-stock merger that is expected to close by the end of the first quarter of 2019. Ready Capital stockholders are expected to own about 72 percent of the combined company\u2019s stock, while ORM stockholders would own the remaining 28 percent. The combined company, which will operate under the name Ready Capital, is expected to have pro forma equity capital of more than $750 million.<\/p>\n

\u201cWe believe the transaction raises incremental capital within minimal tangible book value dilutions and is accretive to forward-looking earnings per share,\u201d<\/em> Thomas Capasse, Ready Capital\u2019s chairman & CEO, said in a prepared statement. \u201cThe combined company will be in a stronger position to execute our business plan, improve operating and cost efficiencies and continue growth in a profitable manner.\u201d<\/em><\/p>\n

Bryan Draper, president of Walnut Creek, Calif.-based ORM, said in prepared remarks that he believes ORM \u201cshareholders will benefit from the better access to financing, larger size and greater resources of the combined company.\u201d<\/em><\/p>\n

Once the merger is completed, Capasse will lead the company and Frederick Herbst, chief financial officer of Ready Capital, will remain CFO of the combined company. The board of directors will have seven members, with one director from ORM\u2019s existing board and six directors appointed by Ready Capital.  Headquarters will be in New York City.<\/p>\n

Among the merger benefits cited were:<\/p>\n