Five Oaks Investment to price cumulative redeemable preferred stock

By Stephanie N. Rotondo

Phoenix, Dec. 17 - Five Oaks Investment Corp. launched an offering of series A cumulative redeemable preferred stock, according to a press release.

Keefe Bruyette & Woods Inc. and Ladenburg Thalmann & Co. Inc. are the joint bookrunners. Mitsubishi UFJ Securities (USA) Inc., BTIG LLC, Maxim Group LLC and MLV & Co. LLC are the co-managers.

The company has granted the underwriters a 15% over-allotment option.

Dividends will be payable on the 27th day of each month, the company said in a Form S-11 registration statement filed with the Securities and Exchange Commission.

The preferreds become redeemable in 2018 but can be redeemed prior to that time to maintain the company's real estate investment trust status, for tax purposes or upon a change of control.

The company has applied to list the new preferred shares on the New York Stock Exchange under the ticker symbol "OAKSPA."

Proceeds will be used to buy legacy non-agency residential mortgage-backed securities, non-agency mortgage assets, multi-family MBS and, to a lesser extent, agency RMBS.

Five Oaks is a New York-based real estate investment trust focused on investing, financing and managing a portfolio of RMBS and MBS.

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