Orchid Island Capital, Inc. Announces Full Exercise of Underwriter’s Option to Purchase Additional Shares & Closing of Publ...
March 05 2021 - 4:05PM
Business Wire
Orchid Island Capital, Inc. (NYSE:ORC) (the “Company”) announced
today the closing of an underwritten public offering of 9,200,000
shares of its common stock, including 1,200,000 shares purchased by
the underwriter pursuant to its exercise, in full, of an option to
purchase additional shares. Aggregate net proceeds to the Company
from the offering, after deducting estimated offering expenses,
were approximately $50.0 million. J.P. Morgan acted as sole
bookrunning manager for the offering.
The Company intends to use the net proceeds of this offering to
invest in a targeted mix of Agency RMBS and for general corporate
purposes. The Company then expects to borrow against the Agency
RMBS that it purchases with the net proceeds of this offering
through repurchase agreements and use the proceeds of the
borrowings to acquire additional Agency RMBS.
The offering was made pursuant to the Company’s existing shelf
registration statement, which was declared effective by the
Securities and Exchange Commission (the “SEC”) on February 10,
2020. The offering of these securities was made only by means of a
prospectus and a related prospectus supplement, which were
previously filed with the SEC. Copies of the prospectus and
prospectus supplement related to this offering may be obtained,
when available, from J.P. Morgan Securities LLC, Attention:
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
NY 11717, telephone: 1-866-803-9204.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the shares 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 Orchid Island Capital, Inc.
Orchid Island Capital, Inc. is a specialty finance company that
invests on a leveraged basis in Agency RMBS. Orchid Island Capital,
Inc. has elected to be taxed as a real estate investment trust for
U.S. federal income tax purposes. Our investment strategy focuses
on, and our portfolio consists of, two categories of Agency RMBS:
(i) traditional pass-through Agency RMBS, such as mortgage
pass-through certificates and collateralized mortgage obligations
issued by Fannie Mae, Freddie Mac or Ginnie Mae, and (ii)
structured Agency RMBS, such as IOs, IIOs and POs, among other
types of structured Agency RMBS. The Company is managed by Bimini
Advisors, LLC, an investment adviser registered with the SEC.
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 with respect to the offering and the
use of proceeds. Forward-looking statements involve numerous risks
and uncertainties. The Company’s actual results may differ from the
Company’s beliefs, expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking
statements as predictions of future events. Forward-looking
statements are not historical in nature and can be identified by
words such as “anticipate,” “estimate,” “will,” “should,” “expect,”
“believe,” “intend,” “seek,” “plan” and similar expressions or
their negative forms, or by references to strategy, plans, or
intentions. Forward-looking statements are based on the Company’s
beliefs, assumptions and expectations of the Company’s future
performance, taking into account all information currently
available to it. No assurance can be given that the net proceeds of
the offering discussed above will be used as indicated. The
application of the net proceeds of the offering is subject to
numerous possible events, factors and conditions, many of which are
beyond the control of the Company and not all of which are known to
it, including, without limitation, market conditions and those
described under the heading “Risk Factors” in the prospectus
supplement related to the offering and in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2020, as
updated by those risk factors included in the Company’s subsequent
filings under the Securities Exchange Act of 1934, as amended,
which can be accessed at the SEC’s website at www.sec.gov. All
forward-looking statements speak only as of the date on which they
are made. New risks and uncertainties arise over time, and it is
not possible to predict those events or how they may affect the
Company. The Company undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
law.
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Orchid Island Capital, Inc. Robert E. Cauley, 772-231-1400
Chairman and Chief Executive Officer
Orchid Island Capital (NYSE:ORC)
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