Enjoy access to a free NMLS renewal class when you attend an in-person event.
Ellington Residential Mortgage REIT announced the pricing of its 3,250,000 common shares. The company priced its shares at $13.20 per share, which consists of 575,000 shares to be sold by the company and 2,675,000 shares to be sold by a selling shareholder, Blackstone Tactical Opportunites EARN Holdings L.L.C.
The company granted the underwriters an option for 30 days to purchase up to an additional 487,500 common shares. The offering is expected to close on June 17, 2021 and is subject to customary closing conditions.
Morgan Stanley & Co. LLC and UBS Securities LLC are acting as joint book-running managers for the offering. Blackstone Securities Partners L.P., BTIG, LLC and Piper Sandler & Co. are acting as co-managers for the offering, according to a press release.
The company expects to use net proceeds received from the offering to acquire its targeted assets. Ellington Residential Mortgage REIT may also use net proceeds for working capital and general corporate purposes. It will not receive any proceeds from the sale of common shares in the offering by the selling shareholder.
The offering of common shares will be made pursuant to the company’s existing shelf registration statement on Form S-3 (File No. 333-255515), which was declared effective by the Securities and Exchange Commission on May 10, 2021. The offering will be made only by means of a prospectus supplement and accompanying base prospectus, which will be filed with the Securities and Exchange Commission.