Arlington Asset Investment Corp. just came out with a new prospectus, available here. This is an SEC requirement for firms looking to issue certain types of securities. An excerpt of the prospectus is provided below:
We estimate that the net proceeds we will receive from the sale of Notes in this offering will be approximately $32.2 million (or
approximately $37.0 million if the underwriters fully exercise their overallotment option) after deducting underwriting commissions and estimated offering expenses.
We expect to use the net proceeds of this offering to redeem all or a portion of the 2023 Notes and to use any remaining net proc
eeds for
general corporate purposes.
There are currently $23.8 million aggregate principal amount of 2023 Notes outstanding, which bear
interest at 6.625% per year and mature on May 1, 2023. We expect to redeem the 2023 Notes at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. We expect the
redemption to occur on or about August 6, 2021. This prospectus supplement does not constitute a notice of redemption under the indenture governing the 2023 Notes.
Pending these uses, we intend to maintain the net proceeds in interest-bearing, short-term, marketable investment grade securities or money
market accounts or (interest or non-interest bearing) checking (or escrow) accounts. These investments may include, for example, government securities other than agency securities, certificates of deposit and
interest-bearing bank deposits. We expect these investments to provide a lower net return than we will seek to achieve from our target assets.
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The above information was disclosed in a filing to the SEC. To see the filing, click here.
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