Rithm Capital Announces $250m Preferred Stock Offering

New York-based Rithm Capital Corp., the parent company of multichannel mortgage lender Newrez, on Tuesday announced the offering of $250 million in the company’s preferred stock. Rithm said it intends to use the net proceeds for future investments and general corporate purposes.

The public offering on the New York Stock Exchange involves 10 million shares of Series F fixed-rate preferred stock at 8.75%. The offering is expected to close on Jan. 21 and is subject to customary closing conditions. Rithm has also granted underwriters the option to oversubscribe the deal by as much as 1.5 million shares for up 30 days.

Morgan Stanley, Goldman Sachs, J.P. Mortgage Securities, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities, Citigroup Global Markets, Piper Sandler & Co., and Keefe, Bruyette & Woods are serving as joint bookrunners for the offering.

The public offering to begin the year builds upon a busy 2025 for Rithm Capital and Newrez.

In December, Rithm completed its acquisition of Crestline Management, adding $17 billion in assets under management while growing its capacities in direct lending, fund liquidity solutions, insurance and reinsurance.

In November, the company terminated a subservicing agreement with Onity Group subsidiary PHH Mortgage Corp., effective at the end of January 2026. The contract, which lasted for nearly a decade, was tied to a $33 billion portfolio that’s comprised mostly of pre-2008 loans.

Rithm announced another acquisition in September, shelling out $1.6 billion for its purchase of Paramount Group that includes ownership of 13 million square feet of office real estate in New York City and San Francisco. It also made noteworthy purchases via a $1 billion investment in home improvement loans through fintech Upgrade and $1.5 billion in residential transition loans from an undisclosed institutional investor.

In the company’s third-quarter 2025 earnings report, company executives lauded the performance of Newrez, which posted pretax income of $295 million, up from $275 million in the second quarter. That included $16.4 billion in funded loans, up 3% year over year, and its biggest month for locked loan volume since 2022.