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Monday, January 28, 2008 10:54:11 PM
Capstead Mortgage bucking the trend?
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Capstead Mortgage Corporation Announces Pricing of Public Offering of Common Stock
January 28, 2008 - 6:33 PM EST
Capstead Mortgage Corporation (NYSE:CMO) announced today the pricing of an underwritten public offering of 8,000,000 shares of its common stock at a price to the public of $15.50 per share. Capstead has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments, if any.
Capstead intends to use the net proceeds from this offering to finance purchases of additional adjustable-rate mortgage, or ARM, Fannie Mae, Freddie Mac or Ginnie Mae-guaranteed residential mortgage-backed securities, on a leveraged basis, and for general corporate purposes.
Capstead expects to close the transaction on or about Friday, February 1, 2008 subject to the satisfaction of customary closing conditions.
Bear, Stearns & Co. Inc. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the offering, with Keefe, Bruyette & Woods, Inc. and JMP Securities LLC acting as co-managers. 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 can be obtained from Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, New York 10179, Attention: Prospectus Department (telephone number: 1-866-803-9204) or Deutsche Bank Securities Inc., 100 Plaza One, Jersey City, NJ 07311, Attention: Prospectus Department (telephone number: 1-800-503-4611; email: prospectusrequest@list.db.com).
All of the shares are being offered by Capstead from its existing shelf registration statement. 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 state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Capstead
Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core strategy is managing a leveraged portfolio of residential mortgage securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed securities carry an actual or implied AAA credit rating with limited, if any, credit risk. Capstead may also augment its core portfolio with investments in credit-sensitive commercial real estate-related assets.
Shares Outstanding: 30.92M
Capstead Mortgage Corporation Announces Pricing of Public Offering of Common Stock
January 28, 2008 - 6:33 PM EST
Capstead Mortgage Corporation (NYSE:CMO) announced today the pricing of an underwritten public offering of 8,000,000 shares of its common stock at a price to the public of $15.50 per share. Capstead has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments, if any.
Capstead intends to use the net proceeds from this offering to finance purchases of additional adjustable-rate mortgage, or ARM, Fannie Mae, Freddie Mac or Ginnie Mae-guaranteed residential mortgage-backed securities, on a leveraged basis, and for general corporate purposes.
Capstead expects to close the transaction on or about Friday, February 1, 2008 subject to the satisfaction of customary closing conditions.
Bear, Stearns & Co. Inc. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the offering, with Keefe, Bruyette & Woods, Inc. and JMP Securities LLC acting as co-managers. 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 can be obtained from Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, New York 10179, Attention: Prospectus Department (telephone number: 1-866-803-9204) or Deutsche Bank Securities Inc., 100 Plaza One, Jersey City, NJ 07311, Attention: Prospectus Department (telephone number: 1-800-503-4611; email: prospectusrequest@list.db.com).
All of the shares are being offered by Capstead from its existing shelf registration statement. 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 state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Capstead
Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core strategy is managing a leveraged portfolio of residential mortgage securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed securities carry an actual or implied AAA credit rating with limited, if any, credit risk. Capstead may also augment its core portfolio with investments in credit-sensitive commercial real estate-related assets.
Shares Outstanding: 30.92M
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