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
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