New York Mortgage Trust Inc. has priced a 4.5 million share offering of its common stock at $6.70 per share this morning, which is $0.14 per share lower than its close on Wednesday afternoon. The real estate investment trust upsized the offering, originally announced at 3.75 million shares.
The underwriters have an option to purchase up to an additional 675,000 shares to cover overallotments, if any. The offering is expected to close on July 17.
Ladenburg Thalmann Co. Inc. is sole book-running manager for the offering. Aegis Capital Corp., Maxim Group LLC and National Securities Corp. are serving as co-managers.
NYMT expects to use the net proceeds of this offering to acquire commercial mortgage-backed securities collateralized by multifamily loans and agency residential mortgage-backed securities. It may also use net proceeds for general working capital purposes, including the repayment of indebtedness.
On Tuesday evening, another REIT, Colony Financial Inc., Los Angeles, priced a 4 million share offering of its preferred stock at $25.685 per share. The transaction represented a reopening of the original issuance of its Series A preferred stock, which closed on March 20.
Barclays Capital Inc., Merrill Lynch, Pierce, Fenner Smith Inc., Morgan Stanley Co. LLC and UBS Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets, LLC and Stifel, Nicolaus Co. Inc. are acting as co-managers.
Net proceeds from the offering will be approximately $99.1 million, or $114 million if the underwriters’ overallotment option is exercised in full. The offering is expected to close on or about July 16.
Colony intends to use the proceeds from the offering to repay amounts outstanding under its revolving credit facility and the balance, if any, for working capital and general corporate purposes.