Anworth Mortgage Asset Corp., which was hurt by the collapse of the regional housing market, said it plans a public offering of 8 million shares of its common stock, with the $46 million in net proceeds to be used to buy agency mortgage-backed securities.
The Santa Monica-based company on Wednesday priced the offering at $6.10 per share for gross proceeds of $48.8 million. Anworth expects the offering to close on Feb. 9.
Agency securities are guaranteed by government-chartered companies Fannie Mae and Freddie Mac or federal agency Ginnie Mae.
In its initial announcement late Tuesday, Anworth said it granted the underwriters a 30-day option to purchase up to an additional 1.2 million shares to cover any over-allotments. Deutsche Bank Securities Inc. and Credit Suisse Securities LLC are acting as joint book-running managers and JMP Securities LLC, RBC Capital Markets and Sterne, Agee & Leach Inc. are acting as co-managers.
Anworth shares closed down 31 cents, or 5 percent to $6.11 on the New York Stock Exchange.
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