Annaly Capital Management, Inc. (NYSE:NLY) has announced a revision in its Conversion rate for the 4.00% Convertible Senior notes
Annaly Capital Management, Inc. (NYSE:NLY) is principally engaged in owning, managing and financing of portfolio investments related to real estate which contains Certificate of Mortgage pass-through, Agency Callable Debentures, Collateralized Mortgage Obligations and securities which represents obligations that have been backed by mortgage loan pools. The company is mortgage real estate investment trust.
The company has recently announced an adjustment to the conversion rate for its 4.00% Convertible Senior Notes which are due in 2015. The adjustment in the conversion rate has been made in accordance with the governing indenture for the said Notes in light of the quarterly cash dividend announced by the company of $0.40 per common share for its second quarter 2013. The new conversion price of the Notes has been fixed at $13.3111 per common share which is effective from June 27, 2013. Earlier the conversion price for the notes was $13.7440 per common share. The new conversion rate for each $1,000 principal amount of Notes is 75.1250 which were earlier 72.7592 of the Company’s common shares. The notice of the conversion rate adjustment was served to the concerned holders and the authorities in pursuant to the terms of the governing indenture for the Notes.
During 2010, the said notes were issued for $600.0 million in aggregate principal amount for net proceeds following underwriting expenses of approximately $582.0 million. As of December 31, 2012 the notes were convertible into shares of common stock at a conversion price of approximately $14.1447 per share of common stock, subject to adjustment in certain circumstances. During 2012, the company repurchased approximately $492.5 million of the outstanding $600.0 million of our 4.00% Convertible Senior Notes for $617.5 million.
The stock of the company closed at $12.10 showing an increase of 4.94% in its previous day’s trading session. The company has a market capitalization of $11.46 billion with 947.37 million shares.