By Toni Weeks
San Luis Obispo, Calif., Dec. 18 - Five Oaks Investment Corp. priced a $20 million offering of 8.75% series A cumulative redeemable preferred stock on Wednesday, according to a press release.
The company sold 800,000 shares at a liquidation preference of $25.00 per share. The company has a 30-day over-allotment option for an additional 120,000 shares.
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.
Dividends will be payable on the 27th day of each month, the company previously 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.
Settlement is expected Dec. 23.
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.
| Issuer: | Five Oaks Investment Corp.
|
| Amount: | $20 million
|
| Description: | Series A cumulative redeemable preferred shares
|
| Greenshoe: | $3 million
|
| Bookrunners: | Keefe Bruyette & Woods Inc. and Ladenburg Thalmann & Co. Inc.
|
| Co-managers: | Mitsubishi UFJ Securities (USA) Inc., BTIG LLC, Maxim Group LLC and MLV & Co. LLC
|
| Coupon: | 8.75%
|
| Price: | par of $25.00
|
| Call: | In 2018, or prior to that in certain circumstances
|
| Trade date: | Dec. 18
|
| Settlement date: | Dec. 23
|
| Stock symbol: | NYSE: OAKSPA (pending)
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