Anworth increases conversion rate of 6.25% convertible preferreds

By Angela McDaniels

Tacoma, Wash., April 10 - Anworth Mortgage Asset Corp. will increase the conversion rate of its 6.25% series B cumulative convertible preferred stock to 3.7329 shares of common stock from 3.6714 shares on Wednesday, according to a company news release.

On March 30, the board of directors declared a quarterly dividend of $0.21 per share of common stock, which is payable on April 27.

The company must adjust the conversion rate when it pays a cash dividend during any quarter in an amount that results in an annualized common stock dividend yield greater than 6.25%.

The convertibles have a liquidation preference of $25.00 each. The new conversion rate is equivalent to a $6.70 conversion price. The company's common stock closed at $6.22 (NYSE: ANH) on Tuesday.

Anworth is a mortgage real estate investment trust based in Santa Monica, Calif., that invests primarily in securities guaranteed by the U.S. government or by federally sponsored enterprises such as Fannie Mae or Freddie Mac.

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