The company priced its offering of 13 million shares at $7.59 a share. The offering also includes an option for underwriters to purchase an additional 1,950,000 shares. The offering should close on Monday, April 7.
NYMT plans to use most of the net proceeds from this offering to acquire distressed residential loans and to invest in mezzanine loans to and preferred equity investments in owners of multi-family properties. It could also use some of the net proceeds for other general purposes, such as the repayment of indebtedness.
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TheStreet Ratings team rates NEW YORK MORTGAGE TRUST INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW YORK MORTGAGE TRUST INC (NYMT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share."