By Rebecca Melvin
New York, May 9 - Annaly Capital Management Inc. priced $750 million of three-year convertible senior notes early Wednesday that were reoffered at 98 and came with a 5% coupon and a 15% initial conversion premium, according to a term sheet.
There is a $112.5 million, or 15%, over-allotment option for the overnight registered offering, which was discounted but priced at the talked price points.
Joint bookrunners were Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and UBS Securities LLC.
Annaly is also planning to price an offering of series C cumulative redeemable preferred stock that was talked with a dividend of 7.625% to 7.75%.
The senior unsecured convertible notes due 2015 are non-callable with no puts and have contingent conversion at a price trigger of 110%. They have standard takeover and dividend protection.
Proceeds are intended to be used to purchase mortgage-backed securities for the company's investment portfolio and for general corporate purposes.
Annaly Capital Management is a real estate investment trust based in New York that owns and manages a portfolio of mortgage-backed securities.
| Issuer: | Annaly Capital Management Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $750 million
|
| Greenshoe: | $112.5 million
|
| Maturity: | May 15, 2015
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC
|
| Coupon: | 5%
|
| Price: | Par, reoffered at 98
|
| Initial conversion premium: | 15%
|
| Initial conversion price: | $18.94
|
| Initial conversion ratio: | 52.7969 shares
|
| Calls: | Non-callable
|
| Contingent conversion: | Yes, at 110%
|
| Takeover protection: | Yes, standard
|
| Dividend protection: | Yes, standard
|
| Price talk: | 5%, up 15%
|
| Pricing date: | May 9
|
| Settlement date: | May 14
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: NLY
|
| Stock reference price: | $16.47 as of close May 8
|
| Market capitalization: | $16 billion
|
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