REIT Prices 65 Million Share Offering

FEB 14, 2013 5:11pm ET

Armour Residential REIT Inc. priced a public offering of 65 million shares of common stock. The underwriters are offering the shares at prevailing market prices or otherwise from time to time through the New York Stock Exchange, the over-the-counter market, negotiated transactions or otherwise. The offering is expected to close on Feb. 20.

The underwriters have a 30-day option to purchase up to 9.75 million additional shares of common stock.

Deutsche Bank Securities Inc., B of A Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and JPMorgan Securities LLC are joint book-running managers of the offering.

Armour said it intends to use the net proceeds of the offering to acquire additional agency securities as market conditions warrant and for general corporate purposes.

The pricing was announced before the market opened on Thursday; on the day it closed at $6.70 per share, down 5.5%.

Earlier in the week, American Capital Mortgage Investment Corp. priced a public offering of 20 million shares of common stock for total expected gross proceeds of approximately $513 million before expenses.

The underwriters an option for 30 days to purchase up to an additional 3 million shares of common stock. The offering is subject to customary closing conditions and is expected to close on Friday.

American Capital expects to use the net proceeds to invest in agency mortgage investments, nonagency mortgage investments and other mortgage-related investments.

Barclays, Citigroup, Credit Suisse Securities (USA) LLC, Morgan Stanley and Wells Fargo Securities are joint book-running managers for the offering. JMP Securities LLC and Keefe, Bruyette & Woods Inc. are the co-lead managers for the offering. Maxim Group LLC and Wunderlich Securities are the co-managers for the offering.

Another recent REIT offering, this one from Zais Financial Corp., has yet to close above its pricing at $21.50 per share.

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