Ellington Financial Completes Merger With Arlington Asset Investment Corp.
14 Dezember 2023 - 3:06PM
Business Wire
— Increases Scale and Further Strengthens
Access to Capital Markets —
— Expected to Drive Earnings Accretion in 2024
—
Ellington Financial Inc. (NYSE: EFC) ("Ellington Financial" or
the "Company") today announced that it has completed the previously
announced merger with Arlington Asset Investment Corp.
(“Arlington”). The combined company will conduct business under the
name “Ellington Financial Inc.”, and the Company’s common stock
will continue to trade on the NYSE under the ticker symbol “EFC.”
The last day of trading for Arlington’s Class A common stock and
Preferred Stock was December 13, 2023.
“We are extremely pleased to close the merger with Arlington.
The transaction provides us not only with a significant portfolio
of assets – particularly low-coupon mortgage servicing rights –
that align well with our expertise and existing management
platform, but also attractive long-term unsecured debt and
preferred equity to further strengthen our balance sheet,” stated
Laurence Penn, Ellington Financial’s Chief Executive Officer. “This
acquisition should lead to greater operating efficiencies and a
larger market capitalization for Ellington Financial, and we
believe that it positions us well to drive earnings accretion
moving forward.”
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
numerous risks and uncertainties. The Company's actual results may
differ from its beliefs, expectations, estimates, and projections
and, consequently, you should not rely on these forward-looking
statements as predictions of future events. Forward-looking
statements are not historical in nature and can be identified by
words such as "believe," "expect," "anticipate," "estimate,"
"project," "plan," "continue," "intend," "should," "would,"
"could," "goal," "objective," "will," "may," "seek" or similar
expressions or their negative forms, or by references to strategy,
plans, or intentions. Forward-looking statements are based on the
Company’s beliefs, assumptions and expectations of the Company’s
future operations, business strategies, performance, financial
condition, liquidity and prospects, taking into account information
currently available to the Company. These beliefs, assumptions, and
expectations are subject to risks and uncertainties and can change
as a result of many possible events or factors, not all of which
are known to the Company. If a change occurs, the Company’s
business, financial condition, liquidity, results of operations and
strategies may vary materially from those expressed or implied in
the Company’s forward-looking statements. The following factors are
examples of those that could cause actual results to vary from the
Company’s forward-looking statements: changes in interest rates and
the market value of the Company's investments; market volatility;
changes in mortgage default rates and prepayment rates; the
Company's ability to borrow to finance its assets; changes in
government regulations affecting the Company's business; the
Company's ability to achieve the cost savings and efficiencies,
operating efficiencies, synergies and other benefits, including the
increased scale, and avoid potential business disruption from the
Merger; the outcome of any legal proceedings relating to the
Merger; the ability to successfully integrate the businesses
following the Merger; the Company's ability to maintain its
exclusion from registration under the Investment Company Act of
1940; the Company's ability to maintain its qualification as a real
estate investment trust; and other changes in market conditions and
economic trends, such as changes to fiscal or monetary policy,
heightened inflation, slower growth or recession, and currency
fluctuations. Furthermore, forward-looking statements are subject
to risks and uncertainties, including, among other things, those
described under Item 1A of the Company's Annual Report on Form
10-K, which can be accessed through the Company's website at
www.ellingtonfinancial.com or at the SEC's website (www.sec.gov).
Other risks, uncertainties, and factors that could cause actual
results to differ materially from those projected may be described
from time to time in reports the Company files with the SEC,
including reports on Forms 10-Q, 10-K and 8-K. The Company
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About Ellington Financial
Ellington Financial invests in a diverse array of financial
assets, including residential and commercial mortgage loans,
reverse mortgage loans, residential and commercial mortgage-backed
securities, consumer loans and asset-backed securities backed by
consumer loans, collateralized loan obligations, non-mortgage and
mortgage-related derivatives, debt and equity investments in loan
origination companies, and other strategic investments. Ellington
Financial is externally managed and advised by Ellington Financial
Management LLC, an affiliate of Ellington Management Group,
L.L.C.
Advisors
Keefe, Bruyette & Woods, A Stifel Company acted as exclusive
financial advisor and Vinson & Elkins acted as legal advisor to
Ellington Financial. Wells Fargo Securities, LLC acted as exclusive
financial advisor and Hunton Andrews Kurth LLP acted as legal
advisor to Arlington.
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Ellington Financial Inc. Investor Relations (203)
409-3575 info@ellingtonfinancial.com
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