ARMOUR Residential REIT declares a public sale of 18.5 million shares of common stock.
ARMOUR Residential REIT Raises $302.5 Million in Public Offering
ARMOUR Residential REIT (NYSE: ARR) has announced a successful public offering of 18.5 million shares of common stock, generating approximately $302.5 million in gross proceeds. The offering, which also includes a 30-day option for underwriters to purchase an additional 2.775 million shares, could potentially raise up to $347.8 million if fully exercised.
The primary purpose of this offering is to expand ARMOUR’s portfolio of mortgage-backed securities and other mortgage-related assets, aligning with the company's investment strategy as a residential mortgage REIT.
Goldman Sachs & Co. LLC is acting as the sole book-runner for the offering, with BUCKLER Securities LLC serving as co-manager. The offering is not a solicitation of an offer to buy or sell any securities, and any offers will be made only by means of a prospectus supplement and the accompanying prospectus.
ARMOUR Residential REIT is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing single-family rental homes. This public offering represents a significant capital raise, enabling ARMOUR to grow its asset base. However, it also implies shareholder dilution from the new shares issued and any additional shares under the option.
The offering is subject to the Securities Act of 1933, as amended, and the closing of the offering is expected to occur on or about March 24, 2023. However, the completion of the offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
[1] Source: ARMOUR Residential REIT press release, 16 March 2023. [2] Source: SEC filing, 17 December 2021. [3] Source: Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC press release, 16 March 2023.
ARMOUR Residential REIT intends to utilize the funds from this offering to invest in mortgage-backed securities and real-estate assets, furthering its business as a residential mortgage REIT. This substantial capital raise could potentially support growth in the company's business by expanding its real-estate portfolio.
