Annaly Capital Prices $1.1bn in Stock to Buy Mortgage Securities

Real estate investment trust (REIT) Annaly Capital Management (NLY) 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 (CS) acts as the lead book-running manager for the offering. Barclays Capital, Deutsche Bank Securities (DB) 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.

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