Why Annaly Capital Management, Inc. (NYSE:NLY) Is Making Noise?


Annaly Capital Management, Inc. (NYSE:NLY) is all set to announce its financial report for the quarter closed June 30, 2017 on August 2, 2017. A couple of days ago, the company released earnings projection for the second quarter closed June 30, 2017.

For Q2 2017, the firm anticipates net income of $0.01 per share compared to net loss of $0.32 per share for the quarter closed June 30, 2016, core earnings discounting the premium amortization adjustment of $0.30 per average common share as against per average common share of $0.29 for the quarter closed June 30, 2016. GAAP net income is projected to be $14,522 while guidance for core earnings is $259,901.

The details

Annaly Capital is seeking acquisitions and it plans to issue a public offering of 60 million shares. In connection with the planned offering, the company plans to allow the underwriters a 30-day option to buy up to an additional nine million shares.

The plan is to utilize the net proceeds of this public offering to buy targeted assets under the firm’s capital allocation plan, which may comprise further expansion of its investments in Agency assets, residential, corporate and commercial credit assets. These investments comprise, without limitation, middle market corporate loans, residential credit assets including residential mortgage loans, Agency MBS pools, to-be-reported forward contracts, commercial real estate loans, mortgage and securities servicing rights and adjustable rate mortgages.

Annaly plans to utilize the funds for general corporate applications, including, without limitation, to reduce liabilities as well as other working capital items. BofA Merrill Lynch, Credit Suisse, J.P. Morgan, Wells Fargo Securities and Goldman Sachs & Co. LLC are working as joint book-running managers for the planned offering. Sandler O’Neill + Partners, L.P. and JMP Securities will be the co-managers for the offering.

In the last trading session, the stock price of Annaly declined 0.08% to close the day at $11.76.

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