Annaly Taps Capital (NLY)

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Annaly Capital Management, Inc. (NYSE: NLY) has priced its public secondary stock offering of 60 million shares of common stock at $16.15 per share.  The gross proceeds are about $969.0 million before fees, and approximately $927.6 million on a net basis.  Annaly has granted the underwriters a 30-day over-allotment option to purchase up to an additional 9 million shares.

All of the shares are being offered by Annaly, and the company intends to use to purchase mortgage-backed securities and some for for general corporate purposes.

Morgan Stanley and Merrill Lynch are the joint book-running managers, while Credit Suisse and Deutsche Bank Securities are senior co-managers; and Citi, UBS, and JPMorgan are co-managers.

Annaly closed at $16.38 yesterday, down from $16.82 on Monday.  Based on that price, its market cap was $7.67 Billion to give a reference for the size of this sale.  Shares are down 1.2% at $16.18 in pre-market trading indications with about 1 hour and 45 minutes to the open.

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Jon C. Ogg
May 14, 2008