Anworth Mortgage Asset Corporation (NYSE: ANH) announced that in
accordance with the terms of Anworth’s 6.25% Series B Cumulative
Convertible Preferred Stock, or Series B Preferred Stock, the Company
announced that the conversion rate of the Series B Preferred Stock will
increase from 3.9881 shares of Anworth’s common stock to 4.0411 shares
of its common stock effective April 1, 2014.
As previously announced on March 21, 2014, Anworth’s board of directors
declared a quarterly common stock dividend of $0.14 per share, which is
payable on April 29, 2014 to holders of record of common stock as of the
close of business on March 31, 2014. 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
3.9881 shares of Anworth’s common stock to 4.0411 shares of its common
stock effective April 1, 2014.
About Anworth Mortgage Asset Corporation
Anworth is an externally-managed mortgage real estate investment trust.
Our principal business is to 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. A small part
of our business also consists of home rentals, where we acquire
single-family residential properties within our target markets and lease
them to quality tenants. 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.” Anworth is a component of the Russell
2000® Index.
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; risks associated with our home rental
business; 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.
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