Ellington Financial Prices $118.5M Stock Offering to Redeem 4.6M Preferred Shares
Ellington Financial priced an underwritten offering of 8.775M common shares and a 1.316M share option to raise $118.5M for redemption of all 4.6M Series A preferred shares at a $25 liquidation preference on February 27, 2026. Post-redemption, Series A trading and dividends cease, with any proceeds funding corporate activities.
1. Board Authorizes Redemption of Series A Preferred Stock
Ellington Financial’s board has approved the redemption of all 4,600,000 outstanding shares of its Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, effective February 27, 2026. Each share will be redeemed at its $25.00 liquidation preference plus accrued and unpaid dividends to, but excluding, the redemption date. Upon redemption, dividends will cease to accumulate and all rights of preferred holders will terminate.
2. Suspension of Trading and Redemption Mechanics
The Series A Preferred Stock will be suspended from trading on the New York Stock Exchange before market open on the redemption date, with a Form 25 to be filed for withdrawal of its listing. All shares are held through the Depository Trust Company and will be redeemed via standard DTC procedures. Equiniti Trust Company, LLC will act as redemption agent, handling payments and inquiries through its Reorganization Department in Mendota Heights, Minnesota.
3. Pricing of Underwritten Common Stock Offering
On January 22, Ellington Financial priced an underwritten public offering of 8,775,000 shares of common stock for total expected gross proceeds of $118.5 million, before underwriting fees and expenses. The underwriters have a 30-day option to purchase up to an additional 1,316,250 shares. Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are serving as joint book-running managers, with the offering expected to close on January 28, 2026, subject to customary conditions.
4. Anticipated Use of Proceeds and Capital Strategy
Ellington Financial plans to apply the net proceeds of the common offering primarily to fund the redemption of its Series A Preferred Stock, consistent with the required minimum 30-day notice period. Any remaining funds will support general corporate purposes, including targeted asset acquisitions aligned with the company’s investment objectives. The shares will be issued under the company’s shelf registration on Form S-3, declared effective December 23, 2025.