Arlington Asset Investment Corp. Announces 1-for-20 Reverse Stock Split
ARLINGTON, Va., Oct. 1 /PRNewswire-FirstCall/ -- Arlington Asset Investment Corp. (NYSE: AI) ("the Company") today announced that its Board of Directors determined to effect a 1-for-20 reverse split of its Class A and Class B common stock, pursuant to previously obtained shareholder authorization. The reverse stock split will be effective at 5:00 pm, Eastern Time, on Tuesday October 6, 2009.
The Company's common stock will begin trading on the New York Stock Exchange on a split adjusted basis when the market opens on October 7, 2009 under its existing symbol "AI".
The reverse split will reduce the number of shares of the Company's common stock outstanding from approximately 160 million to approximately 8 million. Proportional adjustments will be made to outstanding stock options and other equity incentive awards and equity compensation plans. The number of authorized shares of common stock will not change. Upon the effectiveness of the reverse stock split, each twenty shares of issued and outstanding common stock will be converted into one share of common stock. The company will not issue fractional shares and shareholders will receive a cash payment for fractional shares based on the split-adjusted average price of the Class A common stock before the effective time.
Registered holders of the Company's common stock will receive a letter of transmittal shortly after the effective date with instructions for the exchange of their old stock certificates for new, post-split certificates. American Stock Transfer and Trust Company will act as the exchange agent. Stockholders with shares in brokerage accounts will be contacted by their brokers with instructions.
The Company adopted a shareholders' rights plan on June 1, 2009 and is party to a related rights agreement, dated June 5, 2009. Pursuant to the terms of the rights agreement, Arlington has issued one preferred share purchase right ("right") for each share of Class A and Class B common stock outstanding prior to the reverse stock split described in this press release. Each right currently trades with the share of Class A and Class B common stock with which it is associated. Pursuant to the adjustment mechanism set forth in Section 11(n)(iii) of the rights agreement, each share of Class A and Class B common stock outstanding following the reverse stock split will be associated with, and will trade with, twenty rights.
Statements concerning future performance, plans and steps to position the Company to realize value, and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, changes in interest rates, changes in strategy and corporate direction, increased costs of borrowing, decreased interest spreads, changes in mortgage pre-payment speeds, potential mortgage repurchase obligations, changes in investment opportunities, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political, regulatory and market conditions. These and other risks are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are available from the Company and from the SEC.
SOURCE Arlington Asset Investment Corp.
For further information: Kurt Harrington of Arlington Asset Investment Corp., +1-703-373-0200