Annaly Capital Management Inc. plans to offer to the public 65 million common shares.
The company plans to grant the underwriters an option to buy up to an additional 9,750,000 common shares. Based on a closing share price of $12.38 on Oct. 5 and assuming full exercise of the underwriters' option, S&P Global Market Intelligence calculates a gross offering size of about $925.4 million.
Annaly plans to use the net proceeds to acquire targeted assets under its capital allocation policy, which may include further diversification of its investments in government-sponsored enterprise assets and residential, commercial and corporate credit assets. The company also plans to use the proceeds for general corporate purposes, including to pay down obligations and for other working capital items.
Credit Suisse, Bank of America Merrill Lynch, Goldman Sachs & Co. LLC and Wells Fargo Securities are joint book-running managers. Citigroup and RBC Capital Markets are co-managers.