Subsequent Event

3 Months Ended

Mar. 31, 2013

Subsequent Event

Subsequent Event

16.  Subsequent Event

Offering of Series B Preferred Stock/Redemption of Series A Preferred Stock

On April 15, 2013, the Company completed the issuance of 8.0 million shares of its 7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”), liquidation preference $25.00 per share, in an underwritten public offering.  The estimated aggregate net proceeds to the Company from the offering of the Series B Preferred Stock were approximately $193.3 million, after deducting the underwriting discount and estimated offering expenses. The Company plans to use the proceeds of the offering for general corporate purposes, including, without limitation, the redemption of all of its outstanding Series A Preferred Stock (as discussed below), and to use any remaining net proceeds to acquire additional MBS, consistent with its investment policy, and for working capital, which may include, among other things, the repayment of its repurchase agreements.

On April 16, 2013, the Company announced that it will redeem all 3,840,000 outstanding shares of its Series A Preferred Stock on May 16, 2013, at a redemption price of $25.00 per share plus accrued and unpaid dividends for the period from April 1, 2013, through and including the redemption date, for an aggregate redemption price per share of Series A Preferred Stock of approximately $25.27153 (for an aggregate of approximately $97.0 million).