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Real estate investment trust Rithm Capital<\/strong>, the parent of multichannel lender <\/strong>Newrez<\/strong><\/a>, has agreed to issue a one-year loan, purchase common stock and become the external manager of its peer Great Ajax Corp<\/strong>.<\/p>\n New York-based Rithm Capital engaged in acquisitions<\/a> last year to become a global asset manager focused on real estate. This year, it restructured its distributed retail<\/a> business in a shrinking mortgage market, cutting managers and reducing compensation at NewRez, a top 10 mortgage lender and servicer.<\/p>\n Michael Nierenberg, CEO, chairman and president of Rithm Capital, said in a statement that the company\u2019s transaction with Great Ajax represents \u201danother step forward in our evolution<\/a> as a global alternative asset manager.\u201d<\/p>\n \u201cWe believe Great Ajax will be well-positioned to execute on a commercial real estate-focused strategy and generate significant value for shareholders,\u201d Nierenberg said.<\/p>\n According to the deal announced Tuesday, Great Ajax will borrow $70 million in a one-year term loan agreement with one of Rithm\u2019s subsidiaries. The proceeds are expected to repay Great Ajax\u2019s outstanding convertible notes.<\/p>\n The companies noted that Great Ajax will also issue five-year warrants to Rithm, exercisable for its common stock, based on the amounts drawn under the loan facility.<\/p>\n Meanwhile, Rithm will purchase $14 million of Great Ajax common stock to be issued in a securities purchase agreement subject to stockholder approval. Great Ajax has entered into support and exchange agreements with certain institutional stockholders representing more than 40% of the shares of its common stock.<\/p>\n