Five Oaks reopening its 8.75% cumulative redeemable preferred stock

By Stephanie N. Rotondo

Phoenix, May 21 - Five Oaks Investment Corp. announced a reopening of its 8.75% series A cumulative redeemable preferred stock on Wednesday.

The company originally issued $20 million of the shares on Dec. 18. An over-allotment option was exercised in January.

The add-on will have a 15% greenshoe.

In the new offering, Keefe Bruyette & Woods Inc. is acting as the bookrunner. BTIG LLC, Ladenburg Thalmann & Co. Inc. and Mitsubishi UFJ Securities (USA) Inc. are the co-managers.

Dividends are payable on the 27th day of each month through Dec. 27, 2018, at which time the dividend will accrue at Libor plus 715.1 basis points. Should the company fail to make any six dividend payments, the dividend will increase by 2%.

The preferreds become redeemable on or after Dec. 23, 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 securities are listed 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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