Ellington Financial expects to generate $131.5 million in gross proceeds after pricing an underwritten public offering of 5 million shares.

Ellington granted underwriters an option for 30 days to purchase up to an additional 750,000 shares.

The company expects to use the net proceeds of the offering to acquire certain assets, including residential mortgage-backed securities backed by jumbo Alt-A. 

Bank of America Merrill Lynch (BAC), Deutsche Bank Securities (DB) and UBS Securites (UBS) are acting as joint book-running managers for the offering.