NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly“ or the
“Company“) announced today that it has signed a definitive merger
agreement to acquire Merganser Capital Management LP (“Merganser“).
Merganser is a Boston-based institutional fixed-income manager which,
at June 30, 2008, had $4.8 billion in assets under management. The
acquisition is expected to close in the fourth quarter of 2008. Terms
were not disclosed.
The acquisition of Merganser extends Annaly's asset management
platform into traditional fixed income strategies for institutional
clients. Merganser, founded in 1985 by Edward R. Bedrosian, has
expertise in a variety of fixed income strategies and serves a diverse
group of clients, including pension funds, endowments, Taft-Hartley
funds and public mandates. The transaction will be structured so that
Merganser will be merged into a subsidiary of the Company and operate
as a wholly-owned taxable REIT subsidiary of the Company. In
connection with the transaction, key Merganser management personnel
have signed employment agreements.
Michael A.J. Farrell, Annaly's Chairman, Chief Executive Officer
and President, commented on the transaction: “Ed Bedrosian and his
team have built a successful 20+ year track record in the asset
management business, earning a well-deserved reputation for risk
management, security analysis and client service along the way. I
believe that the addition of Merganser to the Annaly platform will not
only enhance the breadth of our investment management offerings but
also extend our reach into new investor bases.“
Edward R. Bedrosian, President of Merganser, commented on the
transaction: “We are pleased to be able to join forces with Annaly.
The company's conservative approach to investing and its operational
focus are consistent with our culture. We at Merganser look forward to
continuing to serve our investors--and future investors--as a part of
the Annaly team.“
About Annaly: Annaly manages assets on behalf of institutional and
individual investors worldwide through Annaly and through the funds
managed by its wholly-owned registered investment advisor, FIDAC. The
Company's principal business objective is to generate net income for
distribution to investors from the spread between the interest income
on its mortgage-backed securities and the cost of borrowing to finance
their acquisition and from dividends Annaly receives from FIDAC, which
earns investment advisory fee income. The Company, a Maryland
corporation has elected to be taxed as a real estate investment trust
(“REIT“).
About Merganser: Merganser Capital Management Limited Partnership
is a team of experienced and dedicated professionals focused on
serving the fixed income investment needs of institutional clients.
Since 1985, Merganser has worked to deliver consistent results and
high quality service in order to build strong and lasting
relationships with institutional investment management clients. Based
in Boston, Merganser offers cash enhancement, short-term bond,
intermediate bond and core bond strategies, as well as customized
product portfolios.
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond our control) may be identified by reference to a future period
or periods or by the use of forward-looking terminology, such as
“may,“ “will,“ “believe,“ “expect,“ “anticipate,“ “continue,“ or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, changes in the market value of
our assets, changes in business conditions and the general economy,
FIDAC's clients' removal of assets FIDAC manages, FIDAC's regulatory
requirements, and competition in the investment management business,
changes in government regulations affecting our business, and our
ability to maintain our qualification as a REIT for federal income tax
purposes. For a discussion of the risks and uncertainties which could
cause actual results to differ from those contained in the
forward-looking statements, see “Risk Factors“ in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2007 and any
subsequent Quarterly Reports on Form 10-Q. We do not undertake, and
specifically disclaim all obligation, to publicly release the result
of any revisions which may be made to any forward-looking statements
to reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
Source: Annaly Capital Management, Inc.
Contact: Annaly Capital Management, Inc.
Investor Relations, 888-8Annaly
www.annaly.com