Annaly Capital Management Prices Preferred Stock Offering

Strategic Insights -

Annaly Capital Management, a diversified capital manager, has successfully priced a public offering of its 8.875 percent series J fixed-rate cumulative redeemable preferred stock. The company aims to raise around $250 million through the sale of 10,000,000 shares, with a liquidation preference of $25.00 per share. The net proceeds from this offering will be used to acquire targeted assets and for general corporate purposes. Subject to customary closing conditions, the offering is expected to close on or about August 7, 2025.

Key Takeaways:

  • Annaly Capital Management has priced a public offering of 10,000,000 shares of its 8.875 percent series J fixed-rate cumulative redeemable preferred stock, at a gross proceeds of around $250 million.
  • The preferred stock has a liquidation preference of $25.00 per share and an annual coupon rate of 8.875 percent.
  • The company plans to apply to list the series J preferred stock on the New York Stock Exchange under the symbol 'NLY.J'.
  • Morgan Stanley & Co. Llc, BofA Securities, Inc, Goldman Sachs & Co. Llc, J.P. Morgan Securities Llc, RBC Capital Markets, Llc, UBS Investment Bank, and Wells Fargo Securities, Llc are serving as joint book-running managers for the offering.
  • The net proceeds from this offering will be used to acquire targeted assets under Annaly's capital allocation policy and for general corporate purposes.
  • Annaly has granted the underwriters a thirty-day option to purchase up to an additional 1,500,000 shares of series J preferred stock, solely to cover over-allotments.

Statistics:

  • Gross proceeds from the offering: around $250 million
  • Number of shares to be sold: 10,000,000
  • Liquidation preference per share: $25.00
  • Annual coupon rate: 8.875 percent
  • Underwriters' option to purchase additional shares: up to 1,500,000 shares

Sources:

  • [1] M2 COMMUNICATIONS - "BANKING AND CREDIT NEWS-August 4, 2025--Annaly Capital Management prices preferred stock offering" (c) 2025 M2 COMMUNICATIONS
  • [2] http://www.m2.co.uk/Global_Banking_News/Annaly-Capital-Management-Inc_--NLY__prices_preferred_stock_offering_10077181.html