Annaly Capital Prices $1.1bn in Stock to Buy Mortgage Securities
Real estate investment trust (REIT) Annaly Capital Management ($14.80 -0.2081%) expects to have raised $1.1bn of gross proceeds from its public offering of 60m shares of common stock this week.
The company plans to use the proceeds to buy mortgage-backed securities (MBS) for its investment portfolio, and to cover general corporate expenses including additional investments and repayment of short-term indebtedness.
The firm announced the public offering Tuesday afternoon. Annaly granted the underwriters a 30-day option to purchase up to an additional 9m shares of common stock to cover any over-allotments.
Credit Suisse Securities ($30.28 0.0237%) acts as the lead book-running manager for the offering. Barclays Capital, Deutsche Bank Securities ($48.29 -0.16%) and RCap Securities are book-running managers.
It marks the latest in a strong year of capital-raising efforts for US REITs, which so far in 2010 raised $22bn in initial, debt and equity capital offerings, according to recent data from the National Association of REITs, NAREIT.
Write to Diana Golobay.
Disclosure: the author holds no relevant investments.
Don’t miss out: get HW delivered via email
- Current Chg.
- NASDAQ 3498.97 33.722 ^ixic
- S&P 500 1670.24 2.77 ^gspc
- Volatility Index 13.03 0.58 ^vix
- KBW Mort. Financial Index 33.16 -0.09 ^mfx
- MSCI US REIT Index 1060.38 -1.21 ^rmz