The hybrid REIT, which invests in both non-agency and agency residential mortgage-backed securities and related assets, also is selling 1,666,667 shares of common stock at $15 per share in a concurrent private placement to an indirect wholly owned subsidiary of XL Group PLC.
According to the REIT, the expected sale would raise an aggregate $85.5 million in gross proceeds, not including any proceeds from a 30-day option granted to underwriters to purchase up to an additional 604,999 shares of common stock. The gross proceeds would include $60.5 million from the public offering and $25 million from the private placement.
The offering and private placement are expected to close on March 27.
Barclays, Credit Suisse, UBS, and Keefe, Bruyette & Woods are joint book running managers. The co-managers are Ladenburg Thalmann & Co. Inc., Mitsubishi UFJ Securities (USA) Inc., Aegis Capital Corp., and National Securities Corp.