DALLAS–(BUSINESS WIRE)–Capstead Mortgage Corporation (“Capstead” or the “Company”) (NYSE: CMO) announced today the pricing of an underwritten public offering of 9,000,000 shares of common stock at a public offering price of $8.60 per share for total gross proceeds of approximately $77.4 million before deducting estimated offering expenses. Capstead has granted the underwriters a 30-day option to purchase up to an additional 1,350,000 shares of common stock. Capstead expects to close the transaction on or about Thursday, August 1, 2019, subject to the satisfaction of customary closing conditions.
Capstead intends to use the net proceeds from this offering to finance on a leveraged basis purchases of additional agency-guaranteed pass-through securities backed by adjustable-rate residential mortgages, or ARM loans, and for general corporate purposes.
Credit Suisse, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. JMP Securities is acting as co-manager of the offering.
The underwriters propose to offer the shares of common stock for sale from time to time in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.
The offering is being made under Capstead’s effective shelf registration statement filed with the Securities and Exchange Commission. Information about the offering is available in the prospectus supplement and the accompanying prospectus of the offering filed with the Securities and Exchange Commission. Copies of the prospectus supplement and the accompanying prospectus may be obtained from:
Credit Suisse Securities (USA) LLC
Attention: Prospectus Department
Eleven Madison Avenue, 3rd Floor
New York, NY 10010
Or by telephone: 800-221-1037
Or by email: email@example.com
BofA Merrill Lynch
200 North College Street, 3rd floor
Charlotte NC 28255-0001
Attn: Prospectus Department
Or by email: firstname.lastname@example.org
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Or by telephone: 1-866-803-9204
This press release shall not constitute an offer to sell or a solicitation of an offer to buy shares of common stock, nor shall there be any sale of shares of common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Capstead is a self-managed real estate investment trust, or REIT, for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.
Statement Concerning Forward-looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “will be,” “will likely continue,” “will likely result,” or words or phrases of similar meaning. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, without limitation, fluctuations in interest rates, the availability of suitable qualifying investments, changes in mortgage prepayments, the availability and terms of financing, changes in market conditions as a result of federal corporate and individual tax reform, changes in legislation or regulation affecting the mortgage and banking industries or Fannie Mae, Freddie Mac or Ginnie Mae securities, the availability of new investment capital, the liquidity of secondary markets and credit markets, and other changes in general economic conditions. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement is made and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers of this document are cautioned not to place undue reliance on any forward-looking statements included herein.