A mortgage subsidiary of Fortress Investment Group LLC has completed a public offering.
The New York-based hedge fund has an interest in Nationstar Mortgage LLC and Newcastle Investment Corp.
In May, Lewisville, Texas-based Nationstar disclosed plans for a $400 million initial public offering.
Earlier this month, Newcastle said it planned a public offering of 22.5 million common shares, which trade on the New York Stock Exchange under the symbol NCT.
On Tuesday, New York-based Newcastle said it completed the sale of 25,875,000 shares of its common stock at a price of $4.55 per share.
Gross proceeds from the sale amounted to $118 million.
Proceeds from the offering will be used to make investments in excess mortgage servicing fees. Newcastle might also use the funds for general corporate purposes — including the repurchase of indebtedness issued by its collateralized-debt obligations and investments in real estate securities.
The joint book-running managers for the offering were Citigroup, Barclays Capital, Morgan Stanley and UBS Investment Bank. Macquarie Capital and Stifel Nicolaus Weisel were the co-managers for the offering.
Newcastle, a real estate investment trust, said that it is managed by a Fortress affiliate.
