By Kenneth Lim
Boston, Jan. 26 - Anworth Mortgage Asset Corp. on Thursday priced $25 million of perpetual convertible preferred stock at a dividend rate of 6.25% and an initial conversion premium of 17.845%.
The preferreds were offered at par of $25. Price talk was not disclosed.
There is an over-allotment option for a further $3.75 million, or 150,000 preferred shares.
Friedman Billings Ramsey was the bookrunner for the registered off-the-shelf offering.
The convertibles may not be mandatorily converted for the first five years, after which the company may force conversion subject to a hurdle at 130% of the conversion price.
There will be dividend protection for quarterly common dividend yields that exceed 6.25% on an annualized basis. There will be takeover protection in the form of a change-of-control put with a make-whole premium.
Anworth, a Santa Monica, Calif.-based real estate investment trust focusing on mortgage-backed securities and residential mortgage loans, said it will use the proceeds of the deal to acquire mortgage-related assets.
| Issuer: | Anworth Mortgage Asset Corp.
|
| Issue: | Convertible preferred stock
|
| Bookrunner: | Friedman Billings Ramsey
|
| Amount: | $25 million
|
| Greenshoe: | $3.75 million
|
| Maturity: | Perpetual
|
| Coupon: | 6.25%
|
| Price: | Par of $25
|
| Yield: | 6.25%
|
| Conversion premium: | 17.845%
|
| Conversion price: | $10.50
|
| Conversion ratio: | 2.3810
|
| Dividend protection: | Conversion ratio adjustment for annualized common dividend yield above 6.25%
|
| Takeover protection: | Change-of-control put with make-whole premium
|
| Mandatory conversion: | No forced conversion before Jan. 25, 2012
|
| Puts: | None
|
| Pricing date: | Jan. 25, after the close
|
| Settlement date: | Feb. 1
|
| Distribution: | Registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
