Mortgage real estate investment trust Five Oaks Investment Corp., New York, has priced its initial public offering of 4,033,333 shares of common stock at $15 per share.
The hybrid REIT, which invests in both non-agency and agency residential mortgage-backed securities and related assets, also is selling 1,666,667 shares of common stock at $15 per share in a concurrent private placement to an indirect wholly owned subsidiary of XL Group PLC.
According to the REIT, the expected sale would raise an aggregate $85.5 million in gross proceeds, not including any proceeds from a 30-day option granted to underwriters to purchase up to an additional 604,999 shares of common stock. The gross proceeds would include $60.5 million from the public offering and $25 million from the private placement.
The offering and private placement are expected to close on March 27.
Barclays, Credit Suisse, UBS, and Keefe, Bruyette Woods are joint book running managers. The co-managers are Ladenburg Thalmann Co. Inc., Mitsubishi UFJ Securities (USA) Inc., Aegis Capital Corp., and National Securities Corp.