The Associated Press September 24, 2010, 3:02PM ET

Cypress Sharpridge stock offer raises nearly $185M

Cypress Sharpridge Investments Inc. on Friday said a stock offering raised nearly $185 million in net proceeds, more than the real estate investment trust had forecast.

Cypress Sharpridge said the total 14.95 million shares of common stock issued in the offering included 1.95 million shares under an option that the underwriters fully exercised.

The shares were sold at an offering price of $12.95 apiece, for total net proceeds of $184.7 million after underwriting discounts, commissions and expenses.

On Tuesday, Cypress Sharpridge had estimated gross proceeds of $168.4 million, assuming 13 million shares would be sold, without underwriters exercising the overallotment option.

Shares of Cypress Sharpridge rose 15 cents to $13.20 in afternoon trading.

The New York-based company specializes in leveraged investing in residential mortgage-backed securities that are guaranteed by government-sponsored Fannie Mae, Freddie Mac and Ginnie Mae.

Cypress Sharpridge said it plans to invest the stock offering proceeds in mortgage-backed securities, and for general corporate purposes.

Barclays Capital, Credit Suisse Securities and Deutsche Bank Securities were the joint bookrunners for the offering. JMP Securities and Stifel, Nicolaus & Co. were joint-lead managers and Oppenheimer & Co. was a co-manager.


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