NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE:NLY) (“Annaly” or the “Company”)
today announced the closing of its recent capital raises of common and
preferred stock that have provided aggregate gross proceeds to the
Company of over $1.5 billion before deducting estimated offering
expenses. The Company has also issued a notice for the redemption of its
7.875% Series A Cumulative Redeemable Preferred Stock.
Common Stock Capital Raise
The Company has closed on the sale of an additional 9,000,000 shares of
common stock related to its previously announced public offering of
60,000,000 common shares pursuant to the full exercise of the
underwriters’ option. Giving effect to the sale of these additional
shares, the Company raised gross proceeds of approximately $816 million
before deducting estimated offering expenses in its common stock
offering.
Preferred Stock Capital Raise
The Company has also closed the public offering of 28 million shares of
its 6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable
Preferred Stock, liquidation preference $25.00 per share, for gross
proceeds of approximately $700 million before deducting the underwriting
discount and other estimated offering expenses. In connection with the
preferred stock offering, Annaly granted the underwriters a thirty-day
option to purchase up to an additional 4.2 million shares of Series F
Preferred Stock solely to cover over-allotments.
Redemption of 7.875% Series A Cumulative
Redeemable Preferred Stock
As previously announced, Annaly will use a portion of the net proceeds
of the public offering of 28 million shares of its 6.95% Series F
Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock to, among
other things, redeem all of its outstanding 7.875% Series A Cumulative
Redeemable Preferred Stock with an aggregate liquidation preference of
approximately $185.3 million, plus accrued but unpaid dividends payable
therewith.
Kevin Keyes, Chief Executive Officer and President of Annaly, commented
“In just over a week, we raised $1.5 billion in two transactions,
pricing the fourth largest overnight common stock deal this year and
executing the largest non-rated preferred offering ever. These
offerings, as well as the announced redemption of our Series A
Preferred, are accretive to shareholder value, enhance our liquidity
position, efficiently reduce our cost of capital and further position us
to capitalize on the numerous growth opportunities for our diversified
platform. The strong demand for these sizeable and attractively priced
offerings is recognition of our market leadership and the direct result
of our comprehensive investor outreach effort, which has successfully
broadened and diversified our shareholder base.”
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the Company’s securities, nor
shall there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction.
About Annaly
Annaly is a leading diversified capital manager that invests in and
finances residential and commercial assets. Annaly’s principal business
objective is to generate net income for distribution to its stockholders
through capital preservation, prudent selection of investments, and
continuous management of its portfolio. Annaly has elected to be taxed
as a real estate investment trust, or REIT, for federal income tax
purposes. Annaly is externally managed by Annaly Management Company LLC.
Forward-Looking Statements
This news release and public documents filed by the Company (“we,” “us,”
“or “our”) to which we refer contain or incorporate by reference certain
forward-looking statements which are based on various assumptions (some
of which are beyond our control) and 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, the expected closing of our public offering of Series F
Preferred Stock on the terms and timing we expect, the timing and terms
on which we are able to complete our intended redemption of our Series A
Preferred Stock, if at all, our ability to experience a lower cost of
capital and other expected financial benefits of the transactions
referenced herein, if at all, changes in interest rates; changes in the
yield curve; changes in prepayment rates; the availability of
mortgage-backed securities and other 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 grow our
commercial business; our ability to grow our residential mortgage credit
business; credit risks related to our investments in credit risk
transfer securities, residential mortgage-backed securities and related
residential mortgage credit assets, commercial real estate assets and
corporate debt; risks related to investments in mortgage servicing
rights and ownership of a servicer; our ability to consummate any
contemplated investment opportunities; changes in government regulations
affecting our business; our ability to maintain our qualification as a
REIT for U.S. 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,
except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170731006122/en/
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
[email protected]
Source: Annaly Capital Management, Inc.