Annaly Capital Management, Inc. : Announces Pricing of Public Offering of Convertible Senior Notes
05/09/2012| 08:50am US/Eastern
Annaly Capital Management, Inc. (NYSE: NLY) today announced the pricing
of its public offering of $750.0 million in aggregate principal amount
of its 5.00% convertible senior notes due 2015.
Annaly has granted the underwriters of the notes a 30-day option to
purchase up to an additional $112.5 million aggregate principal amount
of the notes solely to cover over-allotments, if any. The gross proceeds
to Annaly from this offering will be $750.0 million. Annaly 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. The offering is
expected to close May 14, 2012, subject to customary closing conditions.
Interest on the notes will be paid semi-annually at a rate of 5.00% per
year and the notes will mature on May 15, 2015 unless earlier
repurchased or converted. The notes will be convertible into shares of
Annaly's common stock (the "Common Stock"). The notes will be
convertible at an initial conversion rate of 52.7969 shares of Common
Stock per $1,000 principal amount of notes, which is equivalent to an
initial conversion price of approximately $18.94 per share of Common
Stock, subject to adjustment in certain circumstances.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are
acting as the joint lead book-running managers for the offering. J.P.
Morgan Securities LLC and UBS Securities LLC are acting as the joint
book-running managers for the offering.
Annaly has filed a shelf registration statement and prospectus with the
Securities and Exchange Commission (SEC), and will file a prospectus
supplement for the offering to which this communication relates. Before
you invest, you should read the prospectus supplement and the
accompanying prospectus and other documents Annaly has filed with the
SEC for more complete information about Annaly and this offering. You
may obtain these documents for free by visiting EDGAR on the SEC Web
site at http://www.sec.gov.
Alternatively, Annaly, the underwriters or any dealer participating in
the offering will arrange to send you the prospectus supplement and
accompanying prospectus if you request them by contacting:
Credit Suisse Securities (USA) LLC
Attn: Prospectus Dept.
New York, NY 10010
Telephone: (800) 221-1037
Morgan Stanley & Co. LLC
Attention: Prospectus Dept.
New York, NY 10014
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
Long Island Avenue
Edgewood, NY 11717
UBS Securities LLC
299 Park Avenue
York, NY 10171
Telephone: (877) 827-6444, ext. 561 3884
The notes will be issued pursuant to the shelf registration statement
that was previously filed with the SEC. This press release shall not
constitute an offer to sell or a solicitation of an offer to buy the
notes. An offering of the notes will be made only by means of a
prospectus supplement and accompanying prospectus. The prospectus
supplement and the accompanying prospectus shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any state in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
Statements in this press release contain "forward looking" information
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
involve a number of risks and uncertainties. Those factors include
conditions in the financial markets and customary offering closing
conditions. Please see Annaly's filing with the SEC for certain other
factors that may affect forward-looking information.
Annaly Capital Management, Inc.
© Business Wire 2012