Real estate finance company Ready Capital Corp. RC and Broadmark Realty Capital Inc. BRMK said Monday they have agreed to merge in a deal that is expected to create a company with a pro forma equity capital base of $2.8 billion. Under the terms of the deal, Broadmark stock will be converted into 0.42733 shares of Ready Capital common stock, or a total of approximately 63 million shares of Ready Capital common stock. Based on the two stocks’ closing prices on Feb. 24, the deal implies an offer price of $5.90 per Broadmark share, equal to a premium of 41% or about 0.85 times tangible book value as of Dec. 31, 2022. Once the deal closes, Ready Capital shareholders will own about 64% of the combined company’s stock. The new Ready Capital will have a market cap of about $2.2 billion and will trade on the New York Stock Exchange, under the existing ticker symbol “RC.” The deal is expected to close in the second quarter and create the fourth largest commercial mortgage REIT. Ready Capital CEO Thomas Capasse will continue to lead the company. Broadmark stock jumped 18% premarket.
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