Ellington Financial Inc. Closes Offering of $210 Million of Senior Unsecured Notes

Rhea-AI Summary

Ellington Financial Inc. (NYSE: EFC) has successfully closed a private offering of $210 million in 5.875% senior unsecured notes maturing in April 2027. These notes will be fully guaranteed by the Company. The offering is compliant with Rule 144A and Regulation D, targeting qualified institutional buyers and international investors, thus avoiding registration under the Securities Act. The press release includes cautionary forward-looking statements regarding the Company's future performance, emphasizing the potential risks and uncertainties that could affect results.

Positive

• Closed a private offering of $210 million in senior unsecured notes.
• Notes have a competitive interest rate of 5.875%.
• Full guarantee by the Company enhances investor confidence.

Negative

• Notes are not registered under the Securities Act, limiting their marketability.
• Forward-looking statements highlight risks that could materially affect actual results.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) (the "Company") today announced that certain of its subsidiaries (the “Issuers”) have closed a private offering of $210 million in aggregate principal amount of 5.875% senior unsecured notes due April 2027 (the “Notes”). The Notes will be fully and unconditionally guaranteed by the Company.

The Notes and the guarantee have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes have been offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A, institutional accredited investors under Regulation D under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

Cautionary Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. The Company's actual results may differ from its beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek" or similar expressions or their negative forms, or by references to strategy, plans, or intentions. The Company's results can fluctuate from month to month and from quarter to quarter depending on a variety of factors, some of which are beyond the Company's control and/or are difficult to predict, including, without limitation, changes in interest rates and the market value of the Company's investments, changes in mortgage default rates and prepayment rates, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company's ability to maintain its qualification as a real estate investment trust, or "REIT," and other changes in market conditions and economic trends, including changes resulting from the economic effects related to the COVID-19 pandemic, and associated responses to the pandemic. 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. Furthermore, forward-looking statements are subject to numerous possible events, factors, risks and uncertainties, including, among other things, those described under Item 1A of the Company's Annual Report on Form 10-K, which can be accessed at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports that the Company files with the SEC, including reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220331005967/en/

Ellington Financial

JR Herlihy

(203) 409-3575

Source: Ellington Financial Inc.

FAQ

What was the amount raised in Ellington Financial's recent private offering?

Ellington Financial raised $210 million in a private offering of senior unsecured notes.

What is the interest rate on the notes issued by Ellington Financial?

The notes issued by Ellington Financial have an interest rate of 5.875%.

When do the senior unsecured notes from Ellington Financial mature?

The senior unsecured notes from Ellington Financial mature in April 2027.

Are the notes issued by Ellington Financial registered under the Securities Act?

No, the notes and their guarantee are not registered under the Securities Act.

What risks does Ellington Financial identify regarding their forward-looking statements?

Ellington Financial's forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially.