Ready Capital and Owens Realty Mortgage have entered into a definitive merger agreement to combine in a stock-for-stock merger.
Ready Capital is a multi-strategy real estate finance company focused on small- to medium-sized balance commercial loans. Owens Realty is a specialty finance REIT that focuses on small-balance and middle-market commercial real estate loans.
The combined company, which will operate under the name Ready Capital, is expected to have pro forma equity capital in excess of $750 million.
The transaction is expected to close by the end of the first quarter of 2019, subject to approval by Owens Realty and Ready Capital stockholders and other customary closing conditions.
Upon completion of the transaction, Thomas Capasse, Ready Capital chairman and CEO, will lead the company, and Frederick Herbst, CFO of Ready Capital, will remain CFO. The combined company will be based in New York City. The combined board is expected to have seven directors, consisting of one director from Owens Realty’s existing board and six directors appointed by Ready Capital.
