Ellington swaps Arlington preferreds for preferreds with same terms

By Devika Patel

Knoxville, Tenn., Dec. 15 – Ellington Financial Inc. announced it has completed its previously announced merger with Arlington Asset Investment Corp.

As of 9 a.m. ET on Dec. 14, the effective time of the merger, all of Arlington’s trust preferred securities, 6.75% senior notes due 2025 and 6% senior notes due 2026 were vested in the surviving corporation which will conduct business under the name “Ellington Financial Inc.,” according to an 8-K filing.

Additionally, each of Arlington’s outstanding 7% series B cumulative perpetual redeemable preferred shares was automatically converted into the right to receive one newly issued share of Ellington’s series D preferred stock, which has rights, preferences, privileges and voting powers that are materially the same as those of Arlington’s series B preferred stock.

Also, each of Arlington’s outstanding 8.25% series C fixed-to-floating rate cumulative redeemable preferred shares was automatically converted into the right to receive one newly issued share of Ellington’s series E preferred stock, which has rights, preferences, privileges and voting powers that are materially the same as those of Arlington’s series C preferred stock.

Ellington is an Old Greenwich, Conn.-based mortgage-related asset manager. Arlington Asset was an Arlington, Va.-based real estate investment trust.

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