Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that, in
accordance with the terms of Anworth’s 6.25% Series B Cumulative
Convertible Preferred Stock, or Series B Preferred Stock, the conversion
rate of the Series B Preferred Stock will increase from 3.7930 shares of
Anworth’s common stock to 3.8370 shares of its common stock effective
December 31, 2012.
As previously announced on December 14, 2012, Anworth’s board of
directors declared a quarterly common stock dividend of $0.15 per share,
which is payable on January 29, 2013 to holders of record of common
stock as of the close of business on December 28, 2012. When Anworth
pays a cash dividend during any quarterly fiscal period to its common
stockholders in an amount that results in an annualized common stock
dividend yield greater than 6.25% (the dividend yield on the Series B
Preferred Stock), the conversion rate on the Series B Preferred Stock is
adjusted based on a formula specified in the Articles Supplementary
Establishing and Fixing the Rights and Preferences of the Series B
Preferred Stock (and also available on the “Series B Pfd. Stock
Conversion” page of Anworth’s web site at http://www.anworth.com).
As a result of this dividend, the conversion rate will increase from
3.7930 shares of Anworth’s common stock to 3.8370 shares of its common
stock effective December 31, 2012.
About Anworth Mortgage Asset Corporation
Anworth is an externally-managed mortgage real estate investment trust.
We invest primarily in securities guaranteed by the U.S. Government,
such as Ginnie Mae, or guaranteed by federally sponsored enterprises,
such as Fannie Mae or Freddie Mac. We seek to generate income for
distribution to our shareholders primarily based on the difference
between the yield on our mortgage assets and the cost of our borrowings.
We are managed by Anworth Management, LLC, or the Manager, pursuant a
management agreement. The Manager is subject to the supervision and
direction of our Board of Directors and is responsible for (i) the
selection, purchase and sale of our investment portfolio; (ii) our
financing and hedging activities; and (iii) providing us with management
services and other services and activities relating to our assets and
operations as may be appropriate. Our common stock is traded on the New
York Stock Exchange under the symbol “ANH.”
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
This news release may contain forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based upon
our current expectations and speak only as of the date hereof.
Forward-looking statements, which are based on various assumptions (some
of which are beyond our control) may be identified by reference to a
future period or periods or by the use of forward-looking terminology,
such as “may, ” “will, ” “believe, ” “expect, ” “anticipate, ” “assume,”
“estimate,” “intend,” “continue, ” or other similar terms or variations
on those terms or the negative of those terms. Our actual results may
differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors and
uncertainties, including but not limited to, changes in interest rates;
changes in the market value of our mortgage-backed securities; changes
in the yield curve; the availability of mortgage-backed securities for
purchase; increases in the prepayment rates on the mortgage loans
securing our mortgage-backed securities; our ability to use borrowings
to finance our assets and, if available, the terms of any financing;
risks associated with investing in mortgage-related assets; changes in
business conditions and the general economy, including the consequences
of actions by the U.S. government and other foreign governments to
address the global financial crisis; implementation of or changes in
government regulations affecting our business; our ability to maintain
our qualification as a real estate investment trust for federal income
tax purposes; our ability to maintain an exemption from the Investment
Company Act of 1940, as amended; and the Manager’s ability to manage our
growth. Our Annual Report on Form 10-K and other SEC filings discuss the
most significant risk factors that may affect our business, results of
operations and financial condition. We undertake no obligation to revise
or update publicly any forward-looking statements for any reason.