Arlington Asset Investment Corp. Announces Closing of Senior Notes Offering

Rhea-AI Summary

Arlington Asset Investment Corp. (NYSE: AAIC) has successfully closed a public offering of $33.5 million in 6.000% Senior Notes due 2026, priced at 100% of principal. The offering generated net proceeds of approximately $32.5 million, intended to redeem existing 6.625% Senior Notes due 2023 and for general corporate purposes. An additional $5.0 million may be issued to cover over-allotments. The offering was managed by Ladenburg Thalmann & Co. Inc., in accordance with SEC regulations.

Positive

• Successfully raised $33.5 million through a Senior Notes offering.
• Expected to use proceeds to redeem higher-interest 2023 Notes.

Negative

• None.

MCLEAN, Va., July 15, 2021 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AAIC) (the "Company") announced today that it has closed an underwritten registered public offering of $33.5 million aggregate principal amount of 6.000% Senior Notes due 2026 (the "Notes"). The Notes were priced at 100% of the principal amount and will mature on August 1, 2026.  The Company has granted the underwriters a 30-day option to purchase up to an additional $5.0 million aggregate principal amount of the Notes solely to cover over-allotments, if any.  The offering resulted in net proceeds of approximately $32.5 million after deducting underwriting discounts and commissions, but before expenses.

The Company expects to use the net proceeds of the offering to redeem all or a portion of its 6.625% Senior Notes due 2023 (the "2023 Notes") and use any remaining net proceeds for general corporate purposes. This press release does not constitute a notice of redemption under the indenture governing the 2023 Notes.

Ladenburg Thalmann & Co. Inc. acted as book-running manager of the offering and Compass Point Research & Trading, LLC and JonesTrading Institutional Services LLC acted as co-managers of the offering.

The Notes were 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 was made by means of a prospectus supplement and accompanying base prospectus, filed with the Securities and Exchange Commission. You may obtain copies of these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of these documents may be obtained by contacting Ladenburg Thalmann & Co. Inc. at the address below:

Ladenburg Thalmann & Co. Inc.
640 Fifth Avenue, 4th Floor
New York, New York 10019
telephone: 1-800-573-2541
email: prospectus@ladenburg.com  

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 the Company

The Company currently invests in mortgage-related and other assets and has elected to be taxed as a REIT.  The Company is headquartered in the Washington, D.C. metropolitan area. 

Cautionary Notice Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking as defined by the Private Securities Litigation Reform Act of 1995. No assurance can be given that the net proceeds of this offering will be used as described. Forward-looking statements can be identified by forward-looking language, including words such as "believes," "expects," "anticipates," "estimates," "plans," "continues," "intends," "should", "may," 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 most recent Annual Report on Form 10-K and any other documents filed by the Company with the Securities and Exchange Commission from time to time, which are available from the Company and from the Securities and Exchange Commission, and you should read and understand these risks when evaluating any forward-looking statement.  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.

View original content:https://www.prnewswire.com/news-releases/arlington-asset-investment-corp-announces-closing-of-senior-notes-offering-301335227.html

SOURCE Arlington Asset Investment Corp.

FAQ

What was the total amount raised by Arlington Asset Investment Corp. in the recent offering?

Arlington Asset Investment Corp. raised $33.5 million in their recent offering of Senior Notes.

What is the interest rate and maturity date of the Senior Notes issued by Arlington Asset Investment Corp.?

The Senior Notes issued have a 6.000% interest rate and are due on August 1, 2026.

How much of the proceeds from the Senior Notes offering will be used to redeem existing debt?

The proceeds will be used to redeem a portion of the existing 6.625% Senior Notes due 2023.

What are the net proceeds from the Senior Notes offering after deductions?

The net proceeds from the offering are approximately $32.5 million after deducting underwriting discounts and commissions.