Ellington Financial closes $400 million senior notes offering

Published 06/10/2025, 21:22
Ellington Financial closes $400 million senior notes offering

NEW YORK - Ellington Financial Inc. (NYSE:EFC), a $1.34 billion market cap company currently trading below its InvestingPro Fair Value, announced Monday it has closed its offering of $400 million in 7.375% senior unsecured notes due September 30, 2030, issued through certain subsidiaries.

The notes represent senior unsecured obligations of the issuing subsidiaries and are fully guaranteed by Ellington Financial, according to a company press release.

The real estate investment trust plans to use the net proceeds for general corporate purposes, including repaying a portion of outstanding repurchase agreement borrowings and funding additional asset purchases aligned with its investment strategies.

The notes and guarantee have not been registered under the Securities Act of 1933 and were offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S.

Ellington Financial invests in various financial assets including residential and commercial mortgage loans, mortgage-backed securities, reverse mortgage loans, consumer loans, asset-backed securities, and other strategic investments.

The company is externally managed by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

In other recent news, Ellington Financial reported strong second-quarter results for 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.47, exceeding the expected $0.40 by 17.5%, and generated revenue of $92.54 million, surpassing the forecast of $83.21 million by 11.21%. Additionally, Ellington Financial has priced an offering of $400 million in 7.375% senior unsecured notes due 2030, with the offering expected to close on October 6, 2025. The company intends to use the proceeds for general corporate purposes, including repaying a portion of borrowings and funding additional asset purchases. In a related development, Jones Trading upgraded Ellington from Hold to Buy, citing the likelihood of a dividend increase and the company’s effective hedging capabilities. The analyst firm set a price target of $14.25, reflecting confidence in Ellington’s financial strategies. These recent developments highlight Ellington Financial’s efforts to strengthen its financial position and investor appeal.

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