Anworth Mortgage Asset increases 6.25% convertibles’ conversion ratio

By Angela McDaniels

Tacoma, Wash., June 30 – The conversion rate for Anworth Mortgage Asset Corp.’s 6.25% series B cumulative convertible preferred stock will increase to 4.3274 shares of its common stock from 4.2640 shares, according to an 8-K filing with the Securities and Exchange Commission.

The adjusted conversion ratio is equivalent to $5.78 per share. Anworth stock closed at $4.93 (NYSE: ANH) on Tuesday.

The change is effective as of Wednesday.

The increase is due to a quarterly common stock dividend of $0.15 per share payable on July 29 to holders of record as of the close of business on June 30.

The conversion rate on the series B convertibles is adjusted when Anworth pays a cash dividend during any fiscal quarter to its stockholders in an amount that results in an annualized common stock dividend yield greater than 6.25%.

Anworth is an externally managed mortgage real estate investment trust based in Santa Monica, Calif.

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