Hatteras Financial Corp. (NYSE: HTS) (the “Company”) today announced that it priced an underwritten public offering of 10,000,000 shares of its 7.625% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a public offering price of $25.00 per share, for gross proceeds of $250.0 million, before deducting the underwriting discount and other estimated offering costs. The Company granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of the Series A Preferred Stock solely to cover overallotments, if any. The offering is expected to close on August 27, 2012, subject to customary closing conditions. The Company will file an application to list the Series A Preferred Stock on the New York Stock Exchange under the symbol “HTSPrA.” The Company intends to use the estimated net offering proceeds, after deducting the underwriting discount and other estimated offering costs, of $241.9 million (or $278.2 million if the underwriters exercise their overallotment option in full) to acquire agency securities with short effective durations, primarily three-year, five-year, seven-year and 10-year hybrid ARMs, and other short duration agency securities, such as agency securities backed by 10-year or 15-year fixed-rate mortgages. The Company may also use the net proceeds of this offering for general corporate purposes, which may include the repayment of outstanding indebtedness and the purchase of hedging instruments. Wells Fargo Securities, LLC, Citigroup Global Markets Inc., UBS Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated are serving as the joint book-running managers for the offering. RBC Capital Markets, LLC, Stifel, Nicolaus & Company, Incorporated, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies & Company, Inc., J.P. Morgan Securities LLC, BB&T Capital Markets, a division of Scott & Stringfellow, LLC, Keefe, Bruyette & Woods, Inc. and Sterne, Agee & Leach, Inc. are serving as co-managers for the offering.
This offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission and only by means of a preliminary prospectus supplement and accompanying prospectus.Copies of the final prospectus supplement (when available) and accompanying prospectus may be obtained from (a) Wells Fargo Securities, LLC, Attn: Capital Markets Client Support, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, by e-mail at firstname.lastname@example.org, or by telephone at (800) 326-5897; (b) Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, by e-mail at BATProspectusdept@citi.com, or by telephone at (877) 858-5407; (c) UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, New York 10171, or by telephone at (877) 827-6444, extension 561 3884; (d) Merrill Lynch, Pierce, Fenner & Smith Incorporated, Attention: Prospectus Department, 222 Broadway, 7th Floor, New York, NY 10038, or e-mail email@example.com; or (e) the Internet site of the Securities and Exchange Commission at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy the offered shares or any other securities, nor will there be any sale of such shares or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction. About Hatteras Financial Corp. Hatteras Financial Corp. is a real estate investment trust formed in 2007 to invest in single-family residential mortgage pass-through securities guaranteed or issued by U.S. Government agencies or U.S. Government-sponsored entities, such as Fannie Mae, Freddie Mac or Ginnie Mae. Based in Winston-Salem, N.C., the Company is managed and advised by Atlantic Capital Advisors LLC. The Company is a component of the Russell 1000® index.
Forward-Looking StatementsThis press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “should,” “project” or similar expressions. Forward-looking statements in this press release include, among others, statements about the expected closing of the offering and the use of proceeds from the offering. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, as updated by the Company’s Quarterly Reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.