ARLINGTON, Va., March 11, 2015 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AI) (the "Company") announced today that it has priced an underwritten registered public offering of $32,000,000 aggregate principal amount of 6.75% Senior Notes due 2025 (the "Notes") at 100% of the principal amount. The Company has granted the underwriters a 30-day option to purchase up to an additional $4,800,000 aggregate principal amount of Notes in connection with the offering solely to cover overallotments. RBC Capital Markets is acting as book-running manager for the offering. Compass Point, Ladenburg Thalmann, Maxim Group LLC, MLV & Co., Sterne, Agee & Leach, Inc. and Wunderlich Securities are acting as co-managers for the offering. The offering is subject to customary closing conditions and is expected to close on Wednesday, March 18, 2015.
The Company expects to use the net proceeds of this offering to acquire certain of the Company's target assets, which are expected to consist primarily of agency-backed mortgage-backed securities ("MBS") and may also include private-label MBS. The Company expects to borrow against the assets that it acquires with the net proceeds of this offering through repurchase agreements and to use the proceeds of the borrowings to acquire additional target assets. The Company may also use the net proceeds for general working capital purposes.
The Notes are being 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 Notes will be made only by means of a prospectus supplement and accompanying base prospectus, which will be filed with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying base prospectus related to this offering may be obtained by contacting RBC Capital Markets at:
RBC Capital Markets, LLC
Attention: Investment Grade Syndicate Desk
Three World Financial Center, 200 Vesey Street, 8th Floor
New York, NY 10281
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the offered Notes or any other securities, nor shall there be any sale of such Notes 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 Arlington Asset Investment Corp.
Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets. The Company is headquartered in the Washington, D.C. metropolitan area.
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 the Notes and the anticipated use of proceeds. Forward-looking statements can be identified by forward-looking language, including words such as "believes," "expects," "anticipates," "estimates," "plans," "continues," "intends," "should," "may" or and similar expressions. 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 also include those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as amended, which has 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.