NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE: NLY)
(“Annaly” or the “Company”) today announced that the Company has elected
to convert all outstanding shares of its 6% Series B Cumulative
Convertible Preferred Stock (the “Series B Preferred Stock”) into shares
of Common Stock in accordance with the terms of the Series B Preferred
Stock.
The conversion shall take place and be effective on April 3, 2012.
3.0614 shares of Common Stock will be issued upon conversion of each
share of Series B Preferred Stock. In connection with the conversion of
any Series B Preferred Stock, no fractional shares of Common Stock shall
be issued. The remaining fractional interest shall be paid in cash in an
amount equal to the fractional interest multiplied by the closing sale
price per share of the Company’s Common Stock on the New York Stock
Exchange on April 2, 2012.
771,737 shares of Series B Preferred Stock shall be converted into
2,362,595 shares of Common Stock in this conversion.
Holders of shares of the Series B Preferred Stock as of the record date
of March 1, 2012 will receive the previously announced dividend of
$0.375 per share on April 2, 2012. Holders of shares of the Series B
Preferred Stock shall not be entitled to receive any portion of a
dividend on the shares of Series B Preferred Stock for the period after
March 31, 2012 and all dividends on the Series B Preferred Stock shall
cease.
Notice of the conversion was delivered to The Depository Trust and
Clearing Corporation (“DTC”) in accordance with the terms of the
governing Articles Supplementary for the Series B Preferred Stock. Each
holder of beneficial interest in Series B Preferred Stock must comply
with the procedures of DTC to convert such holder's beneficial interest
in respect of the Series B Preferred Stock.
Annaly manages assets on behalf of institutional and individual
investors worldwide. The Company’s principal business objective is to
generate net income for distribution to investors from its investment
securities and from dividends it receives from its subsidiaries. Annaly
is a Maryland corporation that has elected to be taxed as a real estate
investment trust (“REIT”).
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, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
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 the 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 financings; changes in the market value of
our assets; changes in business conditions and the general economy; our
ability to consummate any contemplated investment opportunities; risks
associated with the businesses of our subsidiaries, including the
investment advisory business of our wholly-owned subsidiaries,
including: the removal by clients of assets managed, their regulatory
requirements, and competition in the investment advisory business; risks
associated with the broker-dealer business of our wholly-owned
subsidiary; changes in government regulations affecting our business;
our ability to maintain our qualification as a REIT for federal income
tax purposes; and our ability to maintain our exemption from
registration under the Investment Company Act of 1940, as amended. 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 most recent Annual Report on Form
10-K and any subsequent Quarterly Reports on Form 10-Q. We do not
undertake, and specifically disclaim any 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.
Annaly Capital Management, Inc.
Investor Relations, 888-8Annaly
www.annaly.com
Source: Annaly Capital Management, Inc.