Great Ajax Corp. closed a private placement of $80 million of the company's preferred stock and warrants to affiliates of Magnetar Capital LLC.
The company issued 820,000 shares of 7.25% series A fixed- to floating-rate preferred stock and 2,380,000 shares of 5.00% series B fixed- to floating-rate preferred stock, each at a purchase price of $25.00 per share.
Great Ajax issued two series of five-year warrants to purchase an aggregate of 4 million of its common shares, at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the company at a specified put price on or after July 6, 2023.
The company also granted the purchasers an option to buy up to an additional 800,000 shares of series A and series B preferred stock and warrants to buy an aggregate of 1 million common shares on the same terms.
Great Ajax expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets.
Piper Sandler & Co. served as the company's financial adviser in connection with the private placement.
Great Ajax on April 6 filed articles supplementary with the Maryland Department of Assessments and Taxation to classify and designate 4 million shares of authorized but unissued preferred shares of the company as 7.25% series A preferred stock and 5.00% series B preferred stock.