By Angela McDaniels
Tacoma, Wash., May 21 - Five Oaks Investment Corp. reopened its 8.75% series A cumulative redeemable preferred stock on Wednesday to issue $15 million of additional preferreds, according to a company news release.
The company originally priced $20 million of the preferreds on Dec. 18, and a $3 million over-allotment option was exercised in January. The total issue size is now $38 million.
The add-on has a $2.25 million greenshoe.
Keefe, Bruyette & Woods, Inc. is the bookrunner.
The dividend rate is fixed up to but excluding Dec. 27, 2018, at which time it will begin to float at Libor plus 715.1 bps. Should the company fail to make any six dividend payments, the dividend will increase by 200 bps.
The preferreds are redeemable on or after Dec. 23, 2018. They are redeemable prior to that time only to maintain the company's real estate investment trust status, for tax purposes or upon a change of control.
The company plans to use the proceeds to purchase legacy non-agency residential mortgage-backed securities, non-agency mortgage assets, multi-family mortgage-backed securities and, to a lesser extent, agency residential mortgage-backed securities.
Five Oaks is a New York City-based REIT focused on investing, financing and managing a portfolio of residential mortgage-backed securities and mortgage-backed securities.
| Issuer: | Five Oaks Investment Corp.
|
| Issue: | Series A cumulative redeemable preferred stock
|
| Amount: | $15 million reopening, or 600,000 shares
|
| Greenshoe: | $2.25 million, or 90,000 shares
|
| Bookrunner: | Keefe, Bruyette & Woods, Inc.
|
| Co-managers: | BTIG LLC, Ladenburg Thalmann & Co. Inc. and Mitsubishi UFJ Securities (USA), Inc.
|
| Dividend: | 8.75% until Dec. 27, 2018, then Libor plus 715.1 bps, payable monthly
|
| Face amount: | $25.00
|
| Call option: | Beginning Dec. 23, 2018
|
| Pricing date: | May 21
|
| Settlement date: | May 27
|
| Listing: | NYSE: OAKS-PrA
|
| Cusip: | 33830W205
|
| Total amount: | $38 million, including $23 million priced previously
|
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