Annaly Capital Management, Inc. Announces Pricing Of Public Offering Of Convertible Senior Notes

Annaly Capital Management, Inc. announced pricing of its public offering of $750.0 million in aggregate principal amount of its 5.00% convertible senior notes due 2015. Annaly has granted underwriters of the notes a 30-day option to purchase up to an additional $112.5 million aggregate principal amount of the notes solely to cover over-allotments, if any. The gross proceeds to Annaly from this offering will be $750.0 million. Annaly expects to use proceeds of this offering to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes, which may include the retirement of its long-term indebtedness, additional investments and repayment of short term indebtedness. The offering is expected to close May 14, 2012. Interest on the notes will be paid semi-annually at a rate of 5.00% per year and the notes will mature on May 15, 2015 unless earlier repurchased or converted. The notes will be convertible into shares of Annaly’s common stock. The notes will be convertible at an initial conversion rate of 52.7969 shares of Common Stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $18.94 per share of Common Stock. Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are acting as the joint lead book-running managers for the offering. J.P. Morgan Securities LLC and UBS Securities LLC are acting as the joint book-running managers for the offering.