Annaly To Acquire MTGE Investment Corp. In $900 Mln Deal - Quick Facts

(RTTNews) - Annaly Capital Management, Inc. (NLY) and MTGE Investment Corp. (MTGE) announced a definitive merger agreement under which Annaly will acquire MTGE for consideration to be paid in cash and shares of Annaly common stock, which values MTGE at $19.65 per share of MTGE common stock based upon the closing price of Annaly common stock on April 30, 2018. MTGE shareholders will have an ability to elect between cash and stock consideration (or a combination of both cash and stock consideration), subject to proration rules such that the aggregate transaction consideration will consist of approximately 50% of Annaly's common stock and approximately 50% in cash.

Prior to closing, each of Annaly and MTGE will declare for their respective shareholders a pro rata common dividend based on its last regular quarterly dividend declared prior to closing and the number of days elapsed since the record date for the most recent quarterly dividend, as of the day immediately prior to the closing date.

The transaction is expected to be accretive to Annaly's core earnings per share in 2018 and is aligned with Annaly's current risk profile and capital allocation strategy.