On January 3, 2018, Annaly Capital Management Inc (NYSE:NLY) entered into the “Sales Agreements” with each of Merrill Lynch, Wells Fargo Securities, LLC, Pierce, Fenner & Smith, Incorporated, Citigroup Global Markets Inc., Barclays Capital Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Keefe, Bruyette & Woods, Inc., J.P. Morgan Securities LLC, UBS Securities LLC and RBC Capital Markets, LLC, collectively called the “Sales Agents.”
Under the set terms of the Sales Agreements, Annaly may offer and sell shares, par value $0.01 a share, having a total offering price of up to $1.5 billion from time to time via any of the Sales Agents. Following these “Sales Agreements”, the Shares may be sold and offered through the Sales Agents in deals appeared to be “at-the-market” offerings as stated in Rule 415(a)(4) under the “Securities Act of 1933”, as amended. Each Sales Agent, at the firm’s election, will use commercially reasonable initiatives consistent with its normal trading and sales practices to offer the shares as directed by the firm.
Under the Sales Agreements, Annaly will compensate each of the Sales Agents in this Sales Agreements, a commission that will be 1.25% or less of the gross sales price a share of Shares offered through it. The agreements comprise customary representations, agreements and warranties of the firm and of its external manager, and customary conditions to closing future sale transactions, obligations and indemnification rights of the parties and termination guidelines. Shares offered under the Sales Agreements will be issued following Annaly’s automatic shelf registration statement.
In the last trading session, the stock price of Annaly declined 0.09% to close the day at $11.46. The decline came at a share volume of 8.25 million compared to average share volume of 9.09 million. Post the recent decline, the market cap of firm was noted at $13.3 billion.