On Thursday, Armour Residential REIT, Inc. (NYSE:ARR), a real estate investment trust, announced an amendment to its equity sales agreement that will increase the available shares of common stock for sale by 25 million. This move brings the total number of shares that may be issued and sold under the program to over 32 million.
The amendment, referred to as the Third Common Stock Sales Agreement Amendment, was made to the original agreement dated July 26, 2023, with several sales agents, including BUCKLER Securities LLC and B. Riley Securities, Inc., among others.
The additional shares will be offered through an “at the market offering” (ATM) program, as detailed in a prospectus supplement filed with the SEC today.
In conjunction with this expansion, Armour Residential REIT also filed Articles of Amendment with the State of Maryland to increase the authorized shares of common stock from 90 million to 125 million, effective as of Wednesday.
The company’s decision to increase the number of shares available for sale comes as part of its ongoing efforts to manage its capital structure.
The equity sales agreement, including the most recent amendment, enables Armour Residential REIT to sell shares from time to time through its sales agents, providing the company with flexibility in accessing capital markets.
The shares from this offering will be issued under Armour Residential REIT’s existing shelf registration statement. The additional capital raised through this offering is expected to be used for general corporate purposes, which may include investing in mortgage-backed securities, repaying debt, or other investments.
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