(By Balaseshan) New York Mortgage Trust Inc. (NASDAQ:NYMT) said it has priced an underwritten registered public offering of 10 million shares at $6.73 apiece, a 3% discount to previous closing price.
NYMT expects to use the net proceeds of this offering to buy certain of its targeted assets, including commercial mortgage-backed securities collateralized by multi-family loans and agency residential mortgage-backed securities, which are backed by Fannie Mae, Freddie Mac or Ginnie Mae, on a leveraged basis.
The company may also use net proceeds for general working capital purposes, including the repayment of indebtedness.
In addition, NYMT granted the underwriters an option to purchase up to an additional 1.5 million shares of common stock. The offering is subject to customary closing conditions and is expected to close on August 21, 2012.
New York Mortgage Trust is authorized to issue up to 400 million common shares and 200 million shares of preferred stock. As on August 13, 2012, there were 22.544 million common shares outstanding.
Deutsche Bank Securities Inc. is serving as the sole bookrunning manager for the offering. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSEAMEX:LTS), is serving as co-manager.
NYMT is trading down 3.46% at $6.70 on Thursday. The stock has been trading between $5.77 and $7.50 for the past 52 weeks.