On Wednesday, residential mortgage REIT Invesco Mortgageannounced that it will issue and sell 15 million new common shares in a follow-on public offering, expected to close on Jan. 28.
Priced at $21 apiece, the shares are expected to yield gross proceeds (before costs are deducted) of $315 million in total. Additionally, the offering's underwriters will have an overallotment option to purchase as many as an additional 2.25 million shares, potentially yielding another $47.25 million in gross proceeds.
In a statement, Invesco said it intends to use the funds generated from this offering "to make additional acquisitions of residential and commercial mortgage-backed securities and mortgage loans, on a leveraged basis, and for other general corporate purposes."
Invesco Mortgage has bout 116 million shares outstanding, according to Yahoo! Finance, with a share price at this writing of $21.34.
The article Invesco Mortgage Floating 15 Million New Shares originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.