Ellington Financial plans $400 million senior notes offering

NEW YORK - Ellington Financial Inc. (NYSE:EFC), a $1.33 billion market cap company currently trading at $13.17, announced Monday plans to offer $400 million in aggregate principal amount of senior unsecured notes due 2030 through certain of its subsidiaries. According to InvestingPro data, the company maintains a strong dividend yield of 11.85% and has consistently paid dividends for 16 consecutive years.

The notes will be senior unsecured obligations of the issuers and fully guaranteed by Ellington Financial, according to a press release statement. With a healthy current ratio of 6.05, the company’s liquid assets well exceed its short-term obligations. The company intends to use the net proceeds for general corporate purposes, including repaying a portion of borrowings under outstanding repurchase agreements 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 may not be offered or sold in the United States except pursuant to an exemption from registration requirements. The offering is limited to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under 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 related investments. The company is externally managed by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

The company maintains its status as a real estate investment trust (REIT) and is listed on the New York Stock Exchange under the ticker EFC.

In other recent news, Ellington Financial LLC reported impressive second-quarter 2025 results, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.47, which was 17.5% higher than the anticipated $0.40. Revenue for the quarter reached $92.54 million, exceeding the forecasted $83.21 million by 11.21%. These results indicate strong performance and have contributed to positive investor sentiment. Additionally, Jones Trading upgraded Ellington from Hold to Buy, setting a price target of $14.25. This upgrade was influenced by the company’s robust second-quarter results and the potential for a dividend increase to $0.42-0.43 per quarter. Jones Trading also highlighted Ellington’s effective hedging strategies, which have protected its book value amid market volatility. These developments reflect a positive outlook for Ellington Financial, as noted by the analysts at Jones Trading.

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