HousingWireHousingWire
Rithm Acquisition Corp. (RAC), a special purpose acquisition company (SPAC) that was created solely to raise money through an initial public offering (IPO) in order to acquire another company, recently closed its IPO of 23 million units.
Per RAC, each $10 unit consists of one Class A ordinary share and one-third of a redeemable warrant at $11.50 per share.
RAC intends to use the expertise and resources of its parent company, Rithm Capital Corp. to find and acquire a private company that has strong long-term growth potential.
Thursday’s announcement came after the company stated its intent last month to raise $200 million for an acquisition in the financial services and real estate sectors.
The original filing of the acquisition notice with the Securities and Exchange Commission (SEC) said that Rithm intends to “target companies in the financial services and real estate sectors where our management has extensive investment and operational experience. In addition, we expect to evaluate opportunities relating to digital infrastructure, including opportunities at the convergence of infrastructure and technology.”
The SPAC announced soon after that it had met this goal and was set to begin trading on Feb. 27.
Rithm, which owns multichannel mortgage lender and servicer Newrez, also announced on Monday the closing of what it calls the largest-ever mortgage servicing rights (MSR) debt issuance.
Monday’s MSR-backed note totals $878 million and is only the second nonrecourse MSR securitization in market history, following Rithm’s $461 million offering in November 2024, HousingWire reported.
The New York-based company’s recent earnings report detailed 57% profit growth in 2024, equating to net income of $835 million.
