Overview

• The companies signed a definitive agreement at $6.60 per fully diluted share, with both boards approving the transaction.
• Closing is targeted for late in the fourth quarter pending Paramount stockholder approval and customary closing conditions.
• Keefe, Bruyette & Woods estimates Rithm will put in $300 million to $500 million of equity, with the balance from co-investors and roughly $490 million of Paramount cash, implying no immediate equity raise or dividend impact.
• Paramount controls more than 13.1 million square feet across New York City and San Francisco and reported 85.4% leasing as of June 30.
• Rithm frames the purchase as a springboard to expand its commercial real estate and asset-management platform, citing attractive entry values and expectations for improving office fundamentals.