Ellington Financial Inc. priced an underwritten public offering of 4 million shares of 6.750% series A fixed-to-floating rate cumulative redeemable preferred stock, with a liquidation preference of $25.00 per share, for gross proceeds of $100 million.
The company granted the underwriters a 30-day option to buy up to an additional 600,000 shares solely to cover overallotments.
Ellington Financial intends to apply to list the series A preferred stock on the NYSE under the symbol EFC PR A.
The offering is expected to close on or about Oct. 22.
The company plans to use the net proceeds to acquire its targeted assets. The net proceeds may also be used for working capital and general corporate purposes.
Morgan Stanley & Co. LLC, UBS Securities LLC, Keefe Bruyette & Woods Inc. and Sandler O'Neill & Partners LP are joint book-running managers for the offering, while Credit Suisse Securities (USA) LLC is co-manager.