Ladder Almost Unchanged in Debut After Raising $225 MillionLeslie Picker
Ladder Capital Corp., a commercial real-estate lender backed by TowerBrook Capital Partners LP and GI Partners LLC, was almost unchanged in its debut after raising $225 million in an initial public offering.
The stock slipped 1 cent to $16.99 as of 4 p.m. in New York. Ladder sold 13.25 million Class A shares at $17 apiece, after offering them for $16 to $18 each. The company is listed on the New York Stock Exchange under the symbol LADR.
Specialty finance companies are returning to the IPO market as they benefit from a recovery in loan demand. The largest U.S. IPO this year was by Santander Consumer USA Holdings Inc., the U.S. auto-lending unit of Banco Santander SA, which raised about $2 billion last month. Santander Consumer has gained 3 percent since then.
Not considered a traditional bank, Ladder operates in three business segments, including commercial mortgage lending, mortgage-backed securities and real-estate assets.
GI Partners, based in Menlo Park, California, holds a 17 percent stake after the offering, while New York-based TowerBrook owns 16 percent, according to a regulatory filing. Neither sold shares in the IPO.
Deutsche Bank AG, Citigroup Inc., Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. managed the IPO. Ladder plans to use the proceeds to expand its loan origination and commercial real-estate businesses, the regulatory filing shows.