Vulture IPO: Hatteras Prices IPO (HTS)

Hatteras Financial Corp. (NYSE: HTS) has priced its initial public offering of 10 million common shares and should open shortly after the open this Friday morning.  The offering priced at $24.00 per share, which is aty the low end of its estimated $24.00 to $26.00 price range.

Hatteras is a REIT which we featured recently that is being externally managed by Atlantic Capital Advisors, LCC.  This was formed late last year and if you read our prior notes on it you’ll conclude that it is basically a quasi vulture fund meant to take advantage of the current mortgage malaise. In November 2007, they generated $157.1 million through a private offering and in February generated $158.8 million in a second private offering.

Keefe, Bruyette & Woods and Banc of America are the co-book running managers; Wachovia Capital Markets, JMP Securities, and Stifel Nicolaus are acting as co-managers in the underwriting.

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Many don’t think well of vultures, even though vultures are a service to society.  We like vultures.

Jon C. Ogg
April 25, 2008