ARLINGTON, Va., March 5, 2019 /PRNewswire/ -- Arlington
Asset Investment Corp. (NYSE: AI) (the "Company") announced today
that it has priced an underwritten registered public offering of
1,200,000 shares of its 8.250% Series C Fixed-to-Floating Rate
Cumulative Redeemable Preferred Stock (the "Series C Preferred
Stock"), liquidation preference $25.00 per share, for gross proceeds of
$30.0 million, before deducting
underwriting discounts and other estimated offering expenses. The
offering is expected to close on March 12,
2019, subject to customary closing conditions. The Company
intends to apply to list the Series C Preferred Stock on the New
York Stock Exchange under the symbol "AI PrC."
The Company has granted the underwriters an option for 30 days
to purchase up to an additional 180,000 shares of the Series C
Preferred Stock to cover over-allotments, if any.
Dividends on the Series C Preferred Stock will accumulate and be
payable from and including the date of original issue to, but
excluding, March 30, 2024, at a fixed
rate equal to 8.250% per annum of the $25.00 liquidation preference. From and including
March 30, 2024, dividends on the
Series C Preferred Stock will accumulate and be payable at a
percentage of the $25.00 liquidation
preference equal to an annual floating rate of three-month LIBOR
plus a spread of 5.664% per annum.
The Company expects to use the net proceeds of this offering to
acquire certain of the Company's target assets, including
residential mortgage-backed securities issued by U.S. government
agencies or guaranteed as to principal and interest by U.S.
government agencies or U.S. government-sponsored enterprises. The
Company may also use the net proceeds for general working capital
purposes.
Morgan Stanley & Co. LLC and UBS Securities LLC are acting
as joint book-running managers for the offering. B. Riley FBR,
Inc., JMP Securities LLC, JonesTrading Institutional Services LLC
and Ladenburg Thalmann & Co. Inc. are acting as co-managers for
the offering.
The shares of Series C Preferred Stock were offered under the
Company's existing shelf registration statement on Form S-3, which
was declared effective by the Securities and Exchange
Commission. The offering of these shares was made only by
means of a prospectus supplement, free writing prospectus and
accompanying base prospectus, which will be filed with the
Securities and Exchange Commission. Copies of the prospectus
supplement, free writing prospectus and accompanying base
prospectus related to this offering may be obtained by contacting
Morgan Stanley & Co. LLC or UBS Securities LLC at the addresses
below:
Morgan Stanley & Co. LLC
180 Varick Street, 2nd Floor
New York, NY 10014
Attention: Prospectus Dept.
UBS Securities LLC
1285 Avenue of the Americas
New York, New York 10019
Attention: Prospectus Department
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy shares of the Series C Preferred
Stock or any other securities, nor shall there be any sale of such
shares or any other securities in any state or other 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 other jurisdiction.
About the Company
Arlington Asset Investment Corp. (NYSE: AI) currently invests
primarily in mortgage-related and other assets and intends to
qualify to be taxed as a real estate investment trust commencing
with its taxable year ending December
31, 2019. The Company is headquartered in the
Washington, D.C. metropolitan
area.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These include statements
regarding the Company's planned offering of Series C Preferred
Stock and the anticipated use of proceeds. Forward-looking
statements can be identified by forward-looking language, including
words such as "believes," "anticipates," "expects," "estimates,"
"intends," "may," "plans," "projects," "will" and similar
expressions, or the negative of these words. Due to known and
unknown risks, including the risk that the assumptions on which the
forward-looking statements are based prove to be inaccurate, actual
results may differ materially from expectations or
projections. These risks include those described in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2018 and specific risks
relating to the offering of the Series C Preferred Stock described
in the prospectus supplement and the accompanying prospectus, as
well as the documents incorporated by reference therein, each of
which have been filed with the Securities and Exchange
Commission. Readers of this press release are cautioned to
consider these risks and uncertainties and not to place undue
reliance on any forward-looking statements. The Company does
not undertake any obligation to update any forward-looking
statement, whether written or oral, relating to matters discussed
in this press release, except as may be required by applicable
securities laws.
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SOURCE Arlington Asset Investment Corp.