Benzinga | Jan 21, 2021 05:41AM EST

Orchid Island Capital Priced 7.6M Share Public Offering of Common Stock @~$5.27/Share

Orchid Island Capital, Inc. (NYSE:ORC) (the "Company") announced that it priced an underwritten public offering of 7,600,000 shares of its common stock for gross proceeds of approximately $40.3 million. The Company also granted the underwriter a 30-day option to purchase up to an additional 1,140,000 shares of common stock. The offering is expected to close on January 25, 2021, subject to customary closing conditions. J.P. Morgan acted as sole bookrunning manager for the offering.

The Company intends to use the net proceeds of this offering to invest in a targeted mix of Agency RMBS and for general corporate purposes. The Company then expects to borrow against the Agency RMBS that it purchases with the net proceeds of this offering through repurchase agreements and use the proceeds of the borrowings to acquire additional Agency RMBS.