Davis Polk is advising Wells Fargo Securities as financial adviser to Ready Capital Corporation in connection with its merger agreement with Anworth Mortgage Asset Corporation, pursuant to which Ready Capital will combine with Anworth. The combined company is expected to have a pro forma equity capital base in excess of $1 billion. The transaction is expected to close by the end of the first quarter of 2021, subject to the respective approvals by the stockholders of Anworth and Ready Capital and other customary closing conditions.

Ready Capital is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Anworth, a Maryland corporation, is a specialty finance mortgage company organized to qualify as a real estate investment trust that invests primarily in mortgage-backed securities that are either rated “investment grade” or are guaranteed by federally sponsored enterprises, such as Fannie Mae or Freddie Mac.

The Davis Polk corporate team includes partner Phillip R. Mills and associate Jenny Ge. All members of the Davis Polk team are based in the New York office.

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