Ellington greenshoe ups fixed-to-floating preferreds to $115 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 22 – Underwriters for Ellington Financial Inc.’s 6.75% $25-par series A fixed-to-floating rate cumulative redeemable preferred stock (Egan-Jones: BBB+) fully exercised their $15 million greenshoe, increasing the total deal size to $115 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $100 million of the preferreds on Oct. 16, as previously reported.

Morgan Stanley & Co. LLC, UBS Securities LLC, Keefe, Bruyette & Woods, Inc. and Sandler O’Neill & Partners, LP are the joint bookrunners.

The dividend is fixed until Oct. 30, 2024, then converts to a rate of Libor plus 519.6 basis points.

The preferreds are redeemable on or after Oct. 30, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change of control.

Ellington plans to use the proceeds for the purchase of targeted assets and for general corporate purposes.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “EFCPrA.”

Ellington is an Old Greenwich, Conn.-based mortgage-related asset manager.

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