Ellington greenshoe lifts $25-par 6.25% preferreds to $120 million

By Marisa Wong

Los Angeles, Dec. 13 – The underwriters of Ellington Financial Inc.’s recently priced 6.25% $25-par series B fixed-rate reset cumulative redeemable preferred stock exercised part of their over-allotment option, bringing the total issue size to $120 million, or 4.8 million shares.

The underwriters purchased 400,000 additional shares, exercising $10 million of the $16.5 million greenshoe for 660,000 additional shares, according to an 8-K filing with the Securities and Exchange Commission.

Ellington priced the initial $110 million, or 4.4 million shares, of series B preferreds on Dec. 8. The offering closed on Monday.

Piper Sandler & Co. is the bookrunner.

The preferreds are redeemable beginning Jan. 30, 2027. Prior to that, the preferreds are redeemable within 120 days after a change of control has occurred.

Ellington plans to use the proceeds for the purchase of targeted assets and for working capital and general corporate purposes.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “EFCPrB.”

Ellington is an Old Greenwich, Conn.-based mortgage-related asset manager.

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