Capstead Mortgage Corporation (NYSE:CMO) announced today that the
underwriters of its recent public offering of 8 million shares of common
stock, which closed on November 21, 2007, have exercised in full their
option to purchase 1.2 million additional shares at the public offering
price of $10.73 per share less underwriting discounts and commissions.
Capstead expects to receive aggregate net proceeds of approximately
$12.2 million from the sale of the additional shares, which would bring
aggregate net proceeds of the offering to approximately $93.5 million
after underwriting discounts, commissions and estimated offering
expenses. Capstead expects to close the sale of additional shares on or
about Thursday, November 29, 2007 subject to the satisfaction of
customary closing conditions.
Capstead intends to use the net proceeds from the sale of additional
shares to finance purchases of additional adjustable-rate mortgage, or
ARM, Fannie-Mae, Freddie Mac or Ginnie Mae-guaranteed residential
mortgage-backed securities, on a leveraged basis, and for general
corporate purposes.
Bear, Stearns & Co. Inc., Keefe, Bruyette & Woods, Inc. and JMP
Securities LLC acted as joint book-running managers for the offering.
RBC Capital Markets acted as a co-manager. Information about the
offering is available in the prospectus supplement and the accompanying
prospectus of the offering filed with the Securities and Exchange
Commission. Copies of the prospectus supplement and the accompanying
prospectus can be obtain from Bear, Stearns & Co. Inc., 383 Madison
Avenue, New York, New York 10179, Attention: Prospectus Department
(telephone number: 631-274-8321).
All of the shares are being offered by Capstead from its existing shelf
registration statement. This press release shall not constitute an offer
to sell or a solicitation of an offer to buy shares of common stock, nor
shall there be any sale of shares of common stock in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such state or jurisdiction.
About Capstead
Capstead Mortgage Corporation, formed in 1985 and based in Dallas,
Texas, is a self-managed real estate investment trust for federal income
tax purposes. Capstead's core strategy is managing a leveraged portfolio
of residential mortgage securities consisting primarily of ARM
securities issued and guaranteed by government-sponsored entities,
either Fannie Mae or Freddie Mac, or by an agency of the federal
government, Ginnie Mae, which the Company refers to collectively as
agency securities. Agency securities carry an actual or implied AAA
credit rating with limited, if any, credit risk. Capstead may also
augment its core portfolio with investments in credit-sensitive
commercial real estate-related assets.
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