Annaly Gets Opportunistic on Share Sale (NLY)
Annaly Capital Management, Inc. (NYSE: NLY) is taking a very opportunistic approach to raising more capital to buy mortgages. The mortgage REIT is raising roughly $1.3 billion in gross proceeds. The terms of the deal are 75,000,000 shares of common…
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If you ask why we call this opportunistic, that is simple. Banks and institutions have been slowly releasing more securities to clean out their books. Annaly said that it intends to use the proceeds of this offering to purchase mortgage-backed securities for its investment portfolio. The company did note that proceeds would be or could be used for “general corporate purposes,” which may include additional investments and repayment of short-term indebtedness.
The underwriting syndicate includes Credit Suisse Securities as the lead book-running manager, and Barclays Capital, J.P. Morgan Securities, and RCap Securities as book-running managers. Annaly granted the underwriters a 30-day option to purchase up to an additional 11,250,000 shares of common stock to cover overallotments.
As a REIT, Annaly distributes almost all of its income to its holders. Before the effects of this underwriting, Annaly showed a market cap of roughly $1.1 billion and the close of $17.87 yesterday compared to a 52-week trading range of $14.09 to $18.75.
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JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
