Ellington Financial Announces Pricing of Initial Public Offering

Oct 08, 2010, 08:55 ET from Ellington Financial LLC

NEW YORK, Oct. 8 /PRNewswire-FirstCall/ -- Ellington Financial LLC (NYSE: EFC), a specialty finance company that specializes in acquiring and managing mortgage-related assets, today announced the pricing of its initial public offering of 4,500,000 common shares representing limited liability company interests at a price to the public of $22.50 per share.  Ellington Financial LLC has also granted the underwriters a 30-day option to purchase an additional 675,000 common shares from Ellington Financial LLC to cover any over-allotments.  The common shares are expected to begin trading this morning on the New York Stock Exchange under the ticker symbol "EFC." Ellington Financial LLC is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

The gross proceeds of the initial public offering before the underwriting discounts, commissions and expenses related to the offering, are expected to be $101.25 million, assuming the underwriters' over-allotment option is not exercised. Ellington Financial LLC intends to use a substantial portion of the net proceeds from the offering to acquire non-agency and agency residential mortgage backed securities and other targeted assets, including derivatives, and to use the balance of the net proceeds, if any, for working capital and general corporate purposes.  The offering is expected to close on October 14, 2010.

Deutsche Bank Securities Inc. is acting as sole book-running manager and Cantor Fitzgerald & Co. is acting as a co-manager for the offering.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on October 7, 2010.  Copies of the final prospectus can be obtained, when available, by contacting Deutsche Bank Securities Inc., Attention: Prospectus Department, at 100 Plaza One, Jersey City, New Jersey 07311, or by calling (800) 503-4611.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering is being made solely by means of a prospectus.

About Ellington Financial LLC

Ellington Financial LLC is a specialty finance company that specializes in acquiring and managing mortgage-related assets, including residential mortgage backed securities backed by prime jumbo, Alt-A and subprime residential mortgage loans, residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity and mortgage-related derivatives, as well as corporate debt and equity securities and derivatives.  Ellington Financial LLC is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

Forward-Looking Statements

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward looking statements are based upon Ellington Financial's present expectations, but these statements are not guaranteed to occur. For example, because this offering has priced, this may imply that the offering will close, but the closing is subject to certain conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the underwriters' over-allotment option may imply that this option will be exercised; however, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward looking statements. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the prospectus.

SOURCE Ellington Financial LLC