Ready Capital Completes Merger with United Development Funding IV
Deal News | Mar 13, 2025 | EIN
Ready Capital Corporation has completed its acquisition of United Development Funding IV, an action finalized under the conditions of an agreement drawn in late November 2024. Post-merger, the unified entity will operate under the Ready Capital brand and continue trading under the ticker symbol 'RC' on the New York Stock Exchange. UDF IV's shareholders have received a blend of Ready Capital shares and contingent value rights based on specific performance conditions tied to a set of UDF IV loans. The merger aims to enhance Ready Capital's portfolio and growth potential amid current market dynamics. Piper Sandler & Co. and Moelis & Company LLC served as the financial advisors for the merger, with legal representation by Alston & Bird LLP, Gibson, Dunn & Crutcher LLP, and Holland & Knight LLP.
Sectors
- Real Estate Finance
- Investment Banking
- Legal Services
Geography
- United States – The companies involved, such as Ready Capital and the advisory firms, are headquartered in the United States, making it the primary geographical focus.
Industry
- Real Estate Finance – The merger involves Ready Capital Corporation, which operates in the real estate finance industry, focusing on originating, acquiring, financing, and servicing commercial real estate loans.
- Investment Banking – The involvement of financial advisors such as Piper Sandler & Co. and Moelis & Company LLC classifies this as engaging the investment banking industry.
- Legal Services – The legal advisory roles played by firms such as Alston & Bird LLP, Gibson, Dunn & Crutcher LLP, and Holland & Knight LLP highlight the relevance of the legal services industry.
Financials
- 0.416 shares of Ready Capital Common Stock per UDF IV share – The exchange rate for UDF IV shareholders receiving Ready Capital shares.
- 0.416 contingent value rights (CVRs) per UDF IV share – CVRs provide UDF IV shareholders potential future rights tied to loan performance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ready Capital Corporation | Acquiring Company | Company | A multi-strategy real estate finance company specializing in commercial real estate loans. |
| United Development Funding IV | Target Company | Company | A public company involved in real estate investment and development. |
| Piper Sandler & Co. | Financial Advisor | Company | Provided exclusive financial advisory services to Ready Capital in the merger. |
| Moelis & Company LLC | Financial Advisor | Company | Served as exclusive financial advisor to UDF IV. |
| Alston & Bird LLP | Legal Advisor | Company | Acted as legal advisor to Ready Capital in the merger. |
| Gibson, Dunn & Crutcher LLP | Legal Advisor | Company | Provided legal advisory services to UDF IV. |
| Holland & Knight LLP | Legal Advisor | Company | Acted as legal advisor to the special committee of UDF IV's Board of Trustees. |