Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

v3.19.2
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
 
These financial statements include a discussion of material events that have occurred subsequent to June 30, 2019 (referred to as “subsequent events”) through the issuance of these condensed consolidated financial statements. Events subsequent to that date have not been considered in these financial statements.

Corporate Activities

On July 2, 2019, in a public offering, New Residential issued 6.2 million shares of its 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share, with a liquidation preference of $25.00 per share for net proceeds of approximately $150.0 million. To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 0.6 million shares of New Residential’s common stock at the closing price per share of common stock on the pricing date, which had a fair value of approximately $0.5 million as of the grant date. The assumptions used in valuing the options were: a 1.91% risk-free rate, a 9.73% dividend yield, 17.95% volatility and 10-year term.

On July 10, 2019, Ditech Holding Corporation filed a notice of cancellation of auction and, as no qualified bids were received by the bid deadline, Ditech Holding Corporation deemed the “stalking horse” bid to be the successful bid for the related assets. The purchase remains subject to approval by the bankruptcy court and various other conditions.

On July 26, 2019, New Residential paid the second quarter 2019 dividend of $0.50 per common share or $207.8 million to stockholders of record as of July 1, 2019.