ARMOUR Residential REIT launches offering of 18.5 million shares

ARMOUR Residential REIT, Inc. (NYSE: ARR) announced it is commencing an underwritten public offering of 18,500,000 shares of common stock. The company expects to grant underwriters a 30-day option to purchase up to 2,775,000 additional shares.

Goldman Sachs & Co. LLC is serving as sole bookrunner for the offering, with BUCKLER Securities LLC acting as co-manager. The company plans to use net proceeds to acquire additional mortgage-backed securities and other mortgage-related assets.

A registration statement for the securities has been filed with the Securities and Exchange Commission and became effective automatically upon filing. The offering is being conducted through a prospectus supplement and base prospectus.

ARMOUR operates as a real estate investment trust that invests primarily in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises or guaranteed by the Government National Mortgage Association. The company is externally managed by ARMOUR Capital Management LP.

As a REIT, ARMOUR is required to distribute substantially all of its ordinary taxable income to maintain its tax status. The company noted that dividends paid in excess of current tax earnings and profits generally will not be taxable to common stockholders.

The announcement was made in a press release statement from the Vero Beach, Florida-based company.

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