Rithm Capital, Great Ajax Enter a Strategic Transaction
By Stephen Nakrosis
Global asset manager Rithm Capital on Monday said it entered into a strategic transaction with real estate investment trust Great Ajax.
Under the terms of the deal, Great Ajax entered a one-year term loan agreement for up to $70 million with one of Rithm's subsidiaries. Great Ajax said it planned to use borrowings under the term loan and other assets to repay its outstanding convertible notes.
Great Ajax also plans to enter into a management agreement with an affiliate of Rithm to serve as its external manager, the companies said, adding "The transaction will enable Great Ajax to shift its strategic direction and capitalize on commercial real estate investment opportunities."
The deal will also see Great Ajax issue five-year warrants to Rithm, exercisable for shares of Great Ajax's common stock. Also, under a securities purchase agreement, Great Ajax will issue $14 million of its common stock to Rithm.
The closing of the purchase, and other aspects of the deal, are subject to approval by Great Ajax stockholders, the companies said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
February 26, 2024 18:42 ET (23:42 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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