Hatteras increases amount of public offering
Reposted from Winston-Salem Journal
Hatteras Financial Corp. said Tuesday it has increased the amount of shares in a public offering by 2.5 million shares to 17.5 million.
It initially announced the offering Monday. The closing date is Friday.
Hatteras is a mortgage real estate investment trust based in Winston-Salem. There is an ownership limit of 9.8 percent of its common stock.
The company said the offering would be worth up to $474.6 million before expenses.
The company expects to provide the offering's underwriters, which include Wells Fargo Securities LLC, with a 30-day option to buy an additional 2.625 million shares to cover overallotments.
Michael Lord, an associate professor of management at Wake Forest University, said Hatteras is likely conducting the offer in an attempt to "scale up their operations."
"There's usually a reason to raise capital beyond just favorable market conditions," Lord said. "It's likely they either see a good opportunity to deploy more capital or simply need more capital for what they're currently doing, or some measure of both."
In March 2011, the company sold 14.5 million of its shares, raising about $473 million.
In other news, Hatteras said in a regulatory filing the compensation and governance committee of its board of directors has approved granting a combined 150,150 shares of time-based restricted stock to its top five executives.
The stock awards were made under its equity-incentive plans.
Michael Hough, its chairman and chief executive, was awarded 46,922 shares, which were worth $1.2 million on the date the stock awards were granted. He also received $148,162 in all other compensation, which represented dividends and distributions on unvested shares of restricted stock.
Benjamin Hough, its president and chief operating officer, received 41,292 shares, which were worth $1.1 million. He also received $129,034 in all other compensation.
Kenneth Steele, its chief financial officer, treasurer and secretary, received 26,276 shares, worth $699,993, and all other compensation of $87,019.
William Gibbs Jr. and Frederick Boos II, its co-chief investment officers, each received 17,830 shares, worth $474,991, and all other compensation of $61,701.