Great Ajax Corp. agreed to issue and sell $80 million of preferred stock, as well as two series of five-year warrants, to affiliates of an institutional accredited investor in a private placement.
Under a securities purchase agreement, the company will issue 1.2 million shares of its 7.25% series A fixed- to floating-rate preferred stock and 2 million shares of its 5.00% series B fixed- to floating-rate preferred stock, each at a purchase price of $25.00 per share.
Great Ajax will also issue two series of five-year warrants to purchase an aggregate of 4 million of its common shares at an exercise price of $10.00 per share. Each series of warrants includes a put option that will allow the holder to sell the warrants to the company at a specified put price on or after July 6, 2023.
In addition, Great Ajax granted the investor an option to buy up to an additional 300,000 series A preferred shares, 500,000 series B preferred shares and warrants to purchase an aggregate of 1 million of the company's common shares on the same terms.
Great Ajax expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets.