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Annaly (NLY) to Offer 75M Common Shares in Public Offering
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Annaly Capital Management, Inc. (NLY - Free Report) recently announced its plans to raise fresh capital by issuing 75 million shares of common stock through a public offering.
Further, it will give underwriters a 30-day option to purchase up to an additional 11,250,000 shares. Annaly plans to spend the proceeds for targeted asset acquisitions under its capital-allocation policy.
It will also be used for general corporate purposes, which may include reducing the company’s liabilities and working capital items. This public offering will also help diversify the company’s investment options.
In fact, as part of the diversification strategy, it will allocate a chunk of stockholders’ equity in a variety of assets. It may expand its Agency, residential, commercial and corporate credit asset investments, such as middle-market corporate loans, residential mortgage loans, Agency MBS pools, adjustable rate mortgages, to-be-announced forward contracts, commercial real estate loans and mortgage servicing rights.
The common stock offering boosts the company's financial flexibility and helps meet its financial obligations in an efficient way. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders, at the same time.
Particularly, Annaly is focused on expanding its commercial real estate investments. This, in turn, is likely to complement its agency investments by providing long-term floating-rate cash flows to shareholders and make it less volatile.
Amid a challenging interest rate and volatile global economic environment, the company’s portfolio-diversification efforts augur well. It reduces Annaly’s dependence on a single investment or financing option, offering higher protection against net asset value fluctuations due to interest-rate changes.
Also, shares of this Zacks Rank #3 (Hold) company have lost 6.4%, narrower than its industry’s decline of 8.4%.
Ladder Capital Corp (LADR - Free Report) carries a Zacks Rank of 2. The company’s earnings estimates for 2019 have remained unchanged at $1.79 over the past 30 days.
AGNC Investment Corp. (AGNC - Free Report) carries a Zacks Rank of 2.Its 2019 earnings estimates have been revised marginally upward to $2.44 over two months’ time.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Annaly (NLY) to Offer 75M Common Shares in Public Offering
Annaly Capital Management, Inc. (NLY - Free Report) recently announced its plans to raise fresh capital by issuing 75 million shares of common stock through a public offering.
Further, it will give underwriters a 30-day option to purchase up to an additional 11,250,000 shares. Annaly plans to spend the proceeds for targeted asset acquisitions under its capital-allocation policy.
It will also be used for general corporate purposes, which may include reducing the company’s liabilities and working capital items. This public offering will also help diversify the company’s investment options.
In fact, as part of the diversification strategy, it will allocate a chunk of stockholders’ equity in a variety of assets. It may expand its Agency, residential, commercial and corporate credit asset investments, such as middle-market corporate loans, residential mortgage loans, Agency MBS pools, adjustable rate mortgages, to-be-announced forward contracts, commercial real estate loans and mortgage servicing rights.
The common stock offering boosts the company's financial flexibility and helps meet its financial obligations in an efficient way. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders, at the same time.
Particularly, Annaly is focused on expanding its commercial real estate investments. This, in turn, is likely to complement its agency investments by providing long-term floating-rate cash flows to shareholders and make it less volatile.
Amid a challenging interest rate and volatile global economic environment, the company’s portfolio-diversification efforts augur well. It reduces Annaly’s dependence on a single investment or financing option, offering higher protection against net asset value fluctuations due to interest-rate changes.
Also, shares of this Zacks Rank #3 (Hold) company have lost 6.4%, narrower than its industry’s decline of 8.4%.
Top Picks
New Residential Investment Corp. carries a Zacks Rank of 2 (Buy), currently. The Zacks Consensus Estimate for 2019 earnings has remained unchanged at $2.36 over the past month.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ladder Capital Corp (LADR - Free Report) carries a Zacks Rank of 2. The company’s earnings estimates for 2019 have remained unchanged at $1.79 over the past 30 days.
AGNC Investment Corp. (AGNC - Free Report) carries a Zacks Rank of 2.Its 2019 earnings estimates have been revised marginally upward to $2.44 over two months’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>