New Residential Investment Corp. (NYSE:NRZ) (the “Company” or “New
Residential”) announced today that it priced its public offering of
25,000,000 shares of its common stock for gross proceeds of
approximately $150 million, before deducting underwriting discounts and
commissions and estimated offering expenses payable by the Company. In
connection with the offering, the Company has granted the underwriter an
option for 30 days to purchase up to an additional 3,750,000 shares of
common stock. The offering is expected to close on April 30, 2014,
subject to customary closing conditions.
New Residential intends to use the net proceeds from this offering for
general corporate purposes, including to make a variety of investments,
which may include, but are not limited to, investments in Excess MSRs,
servicer advances, real estate securities and real estate related loans.
Citigroup is the sole underwriter for the offering. The offering is
being made only by means of a prospectus. Copies of the final prospectus
may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146.
A registration statement relating to these securities was declared
effective on April 24, 2014 by the U.S. Securities and Exchange
Commission. This press release does not constitute an offer to sell or
the solicitation of an offer to buy shares of common stock, nor shall
there be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
ABOUT NEW RESIDENTIAL
New Residential focuses on opportunistically investing in, and actively
managing, investments related to residential real estate. The Company
primarily targets investments in: (1) mortgage servicing related assets,
(2) residential mortgage backed securities (“RMBS”), (3) residential
mortgage loans and (4) other related investments. New Residential is
organized and conducts its operations to qualify as a real estate
investment trust (“REIT”) for federal income tax purposes. The Company
is managed by an affiliate of Fortress Investment Group LLC, a global
investment management firm.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to, statements
relating to the offering and intended use of proceeds. These statements
are based on management’s current expectations and beliefs and are
subject to a number of trends and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements, many of which are beyond our control. The Company can give
no assurance that its expectations will be attained. Factors that could
cause actual results to differ materially from the Company's
expectations include, but are not limited to, the risk that the Company
has a limited operating history as an independent company and may not be
able to successfully operate our business strategy or generate
sufficient revenue to make or sustain distributions to its stockholders;
the risk that servicer advances may not be recoverable or may take
longer to recover than the Company expects, which could cause it to fail
to achieve its targeted return on its investment in servicer advances;
the risk that the Company relies heavily on mortgage servicers to
achieve its investment objective and has no direct ability to influence
their performance; the Company is subject to significant counterparty
concentration and default risks; the risk that many of the Company’s
investments may be illiquid, and this lack of liquidity could
significantly impede its ability to vary its portfolio in response to
changes in economic and other conditions or to realize the value at
which such investments are carried if the Company is required to dispose
of them; and the risk that the Company may not be able to finance its
investments on attractive terms or at all, and financing for its excess
mortgage servicing rights investments may be particularly difficult to
obtain. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections entitled
“Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operation” in the prospectus related to the
offering. In addition, new risks and uncertainties emerge from time to
time, and it is not possible for the Company to predict or assess the
impact of every factor that may cause its actual results to differ from
those contained in any forward-looking statements. Such forward-looking
statements speak only as of the date of this press release. The Company
expressly disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect
any change in the Company’s expectations with regard thereto or change
in events, conditions or circumstances on which any statement is based.
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