Ellington Financial prices $400 million in senior unsecured notes

NEW YORK - Ellington Financial Inc. (NYSE:EFC), a $1.31 billion market cap financial firm currently trading near its InvestingPro Fair Value, has priced an offering of $400 million in 7.375% senior unsecured notes due 2030, the company announced Tuesday. The notes will be issued through certain subsidiaries and will be fully guaranteed by Ellington Financial.

The offering is expected to close on October 6, 2025, subject to customary closing conditions, according to a company press release.

Ellington Financial plans 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 are being offered only to qualified institutional buyers under Rule 144A and to 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, 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 notes represent senior unsecured obligations of the issuing subsidiaries and come with the full guarantee of the parent company.

In other recent news, Ellington Financial reported a strong performance for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.47, outperforming the expected $0.40, while its revenue reached $92.54 million, exceeding the forecast of $83.21 million. Additionally, Ellington Financial announced plans to offer $400 million in senior unsecured notes due 2030, intending to use the proceeds for general corporate purposes, such as repaying borrowings and funding asset purchases. In another development, Jones Trading upgraded Ellington’s stock rating from Hold to Buy, citing the potential for a dividend increase and the company’s effective hedging strategies. The price target was set at $14.25, reflecting confidence in the company’s future financial performance. These recent developments highlight Ellington Financial’s robust financial health and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.