Annaly Capital Management Inc. (NYSE: NLY) has now announced that it intends to conduct a public offering of shares of an original issuance of Series D Cumulative Redeemable Preferred Stock. The preferred issue will come with a liquidation preference price of $25.00 per share.
Today’s preferred share sale will be led by Morgan Stanley, BofA/Merrill Lynch, UBS Securities, J.P. Morgan Securities and RBC Capital Markets as the joint book-running managers for the offering. Co-managers are listed as Barclays Capital, Credit Suisse Securities, Deutsche Bank Securities and Stifel Nicolaus & Company.
Annaly said that it expects to use the proceeds of this offering “to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes, which may include the retirement of its long-term indebtedness, additional investments and repayment of short term indebtedness.”
In a separate release, Annaly said that it has repurchased $280.7 million of its outstanding $600 million in 4% senior convertible notes. The aim is to lengthen its debt maturity schedule and to lower the borrowing costs.
Why this offering matters is that Annaly is one of the top mortgage-REITs out there and its current implied dividend is about 12.6%. With a $17 billion market cap and a share price of $17.53, the 52-week range is $14.65 to $18.28.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
