Real estate finance companies Ready Capital ( NYSE: RC ) and Broadmark Realty Capital ( NYSE: BRMK ) announced on Monday a definitive merger deal to create the fourth commercial mortgage REIT with a capital base of $2.8B.
Pursuant to the deal, Broadmark ( BRMK ) will merge with Ready Capital ( RC ), with each BRMK share to be converted into 0.47233 shares of Ready Capital common stock.
The respective closing prices of the stocks on Feb. 24, 2023 imply an offer price of $5.90 per Broadmark share - representing a 41% premium or ~0.85x tangible book value as of Dec. 31, 2022.
Upon completion of the merger, Ready Capital ( RC ) is expected to have a pro forma equity capital base of $2.8B. RC stockholders are expected to own ~64% of the combined company's stock, while BRMK stockholders will own around 36%.
Headquartered in New York, the combined company will operate under the name "Ready Capital Corporation," with its shares trading on the NYSE under the existing ticker symbol "RC." The entitiy will have a market capitalization of $2.2B.
The transaction has been unanimously approved by each of the companies' board and is expected to close during the second quarter of 2023.
For further details see:
Ready Capital to acquire Broadmark in all-stock deal