ARLINGTON, Va., May 18 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey
Group, Inc. (d/b/a Arlington Asset Investment Corp.) (NYSE: FBR)
("Arlington"), today announced that it will sell approximately half of its
ownership stake in FBR Capital Markets Corporation (Nasdaq: FBCM) for cash
proceeds of approximately $72.5 million. Pursuant to a stock repurchase
agreement between the Company and FBR Capital Markets, the Company will sell,
and FBR Capital Markets will purchase, 16,667,000 shares of FBR Capital
Markets common stock at a purchase price of $4.35 per share. The stock sale
will reduce Arlington's ownership stake in FBR Capital Markets from
approximately 56% to approximately 39%. The stock sale is expected to close
on or before June 2, 2009.
"Along with $172 million of gains from recent redemptions of trust preferred
securities, the sale of these shares is a meaningful step for Arlington as it
clarifies our focus as a principal investment firm and frees up capital to
pursue other corporate and investment options," said J. Rock Tonkel, Jr.,
President and COO of Arlington Asset Investment Corp. "This sale provides the
Company with substantial additional liquidity and, given current dislocations
in the capital markets, will allow the Company to benefit from high current
cash returns available on an unlevered basis from investments, including
senior non-agency mortgage securities, among others."
Further, the sale will allow Arlington to most effectively utilize its net
operating loss carry-forwards and capital loss carry-forwards on a timely
basis.
Following the closing, FBR Capital Markets has agreed to cooperate with
Arlington to facilitate the sale of Arlington's remaining shares of FBR
Capital Markets. The companies have also agreed to terminate certain
intercompany services and governance agreements.
About the Company
Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment
Corp.) (NYSE: FBR) invests in mortgage-related assets and merchant banking
opportunities. The Company is headquartered in the Washington, D.C.
metropolitan area. For more information, please visit www.arlingtonasset.com.
Certain statements in this press release constitute forward-looking statements
that are subject to a number of factors, risks, assumptions, predictions and
uncertainties that might cause actual results to differ materially from stated
expectations or current circumstances. These factors include, but are not
limited to the Company's ability to complete the stock sale and effectively
deploy the proceeds from the sale of the FBR Capital Markets stock, the
Company's ability to generate high current cash returns for shareholders, the
potential loss of the Company's net operating loss carry-forwards ("NOLs") and
net capital loss carry-forwards ("NCLs"), the Company's ability to forecast
its tax attributes (which are based upon various facts and assumptions), the
Company's ability to protect and use its NOLs and NCLs to offset future
taxable income and the Company's ability to generate taxable income in the
future. These and other factors that could cause the Company's actual results
to differ materially from those described in the forward-looking statements
are set forth in the Company's annual report on Form 10-K, as amended, the
Company's quarterly reports on Form 10-Q and the Company's other public
filings with the SEC and public statements. Readers of this press release are
cautioned to consider these risks and uncertainties and not to place undue
reliance on any forward-looking statements.
SOURCE Friedman, Billings, Ramsey Group, Inc.
Media: +1-703-469-1004, media@arlingtonasset.com, or Investors: Kurt
Harrington, +1-703-469-1080, ir@arlingtonasset.com, both for Friedman,
Billings, Ramsey Group, Inc.
