|6 Months Ended|
Jun. 30, 2019
|Subsequent Events [Abstract]|
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.
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.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef