(Annaly Capital (NLY), Crexus (CXS) report updated with recent broker action on Annaly Capital.)
NEW YORK (TheStreet) -- Crexus Investment (CXS), in which Annaly Capital Management (NLY) is a 25% owner, rejected an acquisition bid from Starwood Property Trust (STWD) and priced a secondary offering at a steep discount.
Crexus shares had surged nearly 14% at midday Monday when Starwood Property made an unconditional offer to acquire all of the outstanding shares of Crexus Investment for $14.00 per share. That offer represented a 20% premium to Crexus' trading price earlier in the day, ahead of the offer.
Starwood's offer was contingent on Crexus abandoning its plans for a secondary offering. The offering was announced a week earlier as Crexus looked to acquire a commercial real estate mortgage loan portfolio from Barclays Capital (BCS).But Crexus rejected Starwood's bid and then late Monday Crexus announced it had priced the underwritten public offering of 50 million shares at $11.50 per share, hoping to raise gross proceeds of around $575 million. Underwriters were granted the option to purchase up to an additional 7.5 million shares to cover over-allotments. Concurrent with the offering, Annaly Capital, the parent company of Crexus' external manager, Fixed Income Discount Advisory, will acquire 5 million shares of Crexus in a private placement at the same price per share. Both offerings are expected to close on or around April 1.
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