Arlington Asset Investment Corp. Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Arlington Asset Investment Corp. (NYSE: AAIC) announced the pricing of a public offering of $33.5 million 6.000% Senior Notes due 2026. The Notes are priced at 100% of the principal and will mature on August 1, 2026, with closing expected on July 15, 2021. Proceeds will be used to redeem 6.625% Senior Notes due 2023 and for general corporate purposes. The offering is managed by Ladenburg Thalmann & Co. Inc., with co-managers including Compass Point Research & Trading, LLC and JonesTrading Institutional Services LLC.

Positive

• Successful pricing of $33.5 million Senior Notes offering.
• Proceeds will be used to redeem higher-interest 2023 Senior Notes.

Negative

• The reliance on public offering might indicate liquidity issues.

MCLEAN, Va., July 7, 2021 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AAIC) (the "Company") announced today that it has priced 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 offering is subject to customary closing conditions and is expected to close on July 15, 2021. 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 Company expects to use the net proceeds of this 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. is acting as book-running manager of the offering and Compass Point Research & Trading, LLC and JonesTrading Institutional Services LLC are acting as co-managers of the offering.

The Notes will be 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. 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, when available, 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.  For example, the fact that the offering has priced may imply that the offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. No assurance can be given that the offering discussed above will be completed on the terms described or at all or 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.

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SOURCE Arlington Asset Investment Corp.

FAQ

What is the pricing of the Senior Notes offered by AAIC?

The Senior Notes are priced at $33.5 million with a 6.000% interest rate.

When will the Senior Notes issued by AAIC mature?

The Senior Notes will mature on August 1, 2026.

What is AAIC planning to do with the proceeds from the Senior Notes?

AAIC plans to redeem its 6.625% Senior Notes due 2023 and fund general corporate purposes.

Who are the underwriters for AAIC's Senior Notes offering?

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

When is the expected closing date for the AAIC Senior Notes offering?

The expected closing date is July 15, 2021.