Annaly Prices Offering

The REIT priced 35.5 mililon shares at $12.30 each, a slight discount to current prices.
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Shares of

Annaly Capital Management

(NLY) - Get Report

dipped Thursday after the REIT priced a common stock offering of 35.5 million shares at $12.30 each.

The offering is being priced at a slight discount to current prices and presents more than 21% of the real estate investment trust's current shares outstanding. Annaly shares were recently down 7 cents, or 0.6% to $12.47. The stock is more than 20% below its 52-week high.

The company plans to use proceeds from the sale, approximately $415 million after bankers' fees, to purchase mortgage-backed securities and for general corporate purposes.

Merrill Lynch is the sole book-running manager for the offering. Citigroup and UBS Investment Bank are acting as joint lead managers, with Bear Stearns, Lehman Brothers, Keefe Bruyette & Woods and RBC Capital Markets acting as co-managers, according to the company's press release.

Underwriters have been granted a 30-day option to buy as much as 5.3 million common shares to cover any overallotments.