ARMOUR Residential REIT , a mortgage real estate investment trust, announced yesterday that it is commencing a 65-million-share offering of its stock so that, as market conditions warrant, the net proceeds will be used to acquire additional agency securities.
Rather than be issued all at once, the underwriters plan to offer the shares at prevailing market prices at various times through the New York Stock Exchange, the over-the-counter market, or through negotiated transactions.
In addition to the base amount, ARMOUR noted that Deutsche Bank Securities, BofA Merrill Lynch, Barclays Capital, Citigroup Global Markets, Credit Suisse Securities, and J.P. Morgan Securities -- all of which are acting as book-running managers of the offering -- will have 30 days to decide whether to purchase an additional 9.75 million shares.
ARMOUR invests primarily in hybrid adjustable rate, adjustable rate, and fixed rate residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities, such as Fannie Mae, Freddie Mac, and Ginne Mae. Its shares closed down $0.02 yesterday, finishing the day at $7.09.
The article ARMOUR Residential REIT to Offer 65 Million Shares originally appeared on Fool.com.
The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.