Arlington Asset Investment Corp. Announces Sale of FBR Capital Markets Stock
ARLINGTON, Va., May 18 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.) (NYSE: FBR) ("Arlington"), today announced that it will sell approximately half of its ownership stake in FBR Capital Markets Corporation (Nasdaq: FBCM) for cash proceeds of approximately$72.5 million. Pursuant to a stock repurchase agreement between the Company and FBR Capital Markets, the Company will sell, and FBR Capital Markets will purchase, 16,667,000 shares of FBR Capital Markets common stock at a purchase price of $4.35 per share. The stock sale will reduce Arlington's ownership stake in FBR Capital Markets from approximately 56% to approximately 39%. The stock sale is expected to close on or before June 2, 2009.
"Along with $172 million of gains from recent redemptions of trust preferred securities, the sale of these shares is a meaningful step for Arlington as it clarifies our focus as a principal investment firm and frees up capital to pursue other corporate and investment options," said J. Rock Tonkel, Jr., President and COO of Arlington Asset Investment Corp. "This sale provides the Company with substantial additional liquidity and, given current dislocations in the capital markets, will allow the Company to benefit from high current cash returns available on an unlevered basis from investments, including senior non-agency mortgage securities, among others."
Further, the sale will allow Arlington to most effectively utilize its net operating loss carry-forwards and capital loss carry-forwards on a timely basis.
Following the closing, FBR Capital Markets has agreed to cooperate with Arlington to facilitate the sale of Arlington's remaining shares of FBR Capital Markets. The companies have also agreed to terminate certain intercompany services and governance agreements.
About the Company
Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.) (NYSE: FBR) invests in mortgage-related assets and merchant banking opportunities. The Company is headquartered in theWashington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.
Certain statements in this press release constitute forward-looking statements that are subject to a number of factors, risks, assumptions, predictions and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to the Company's ability to complete the stock sale and effectively deploy the proceeds from the sale of the FBR Capital Markets stock, the Company's ability to generate high current cash returns for shareholders, the potential loss of the Company's net operating loss carry-forwards ("NOLs") and net capital loss carry-forwards ("NCLs"), the Company's ability to forecast its tax attributes (which are based upon various facts and assumptions), the Company's ability to protect and use its NOLs and NCLs to offset future taxable income and the Company's ability to generate taxable income in the future. These and other factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements are set forth in the Company's annual report on Form 10-K, as amended, the Company's quarterly reports on Form 10-Q and the Company's other public filings with the SEC and public statements. Readers of this press release are cautioned to consider these risks and uncertainties and not to place undue reliance on any forward-looking statements.
SOURCE Friedman, Billings, Ramsey Group, Inc.
For further information: Media: +1-703-469-1004, firstname.lastname@example.org, or Investors:
Kurt Harrington, +1-703-469-1080, email@example.com, both for Friedman,
Billings, Ramsey Group, Inc./
/Web Site: http://www.arlingtonasset.com /
CO: Friedman, Billings, Ramsey Group, Inc.; FBR Capital Markets Corporation;
Arlington Asset Investment Corp.
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3051 05/18/2009 23:36 EDT http://www.prnewswire.com