Ellington Financial Inc, a REIT investing in residential and commercial mortgage loans, has entered into a definitive merger agreement with Arlington Asset Investment Corp, a REIT primarily investing in mortgage-related assets. Upon completion of the deal, Ellington Financial stockholders will own approximately 85% of the combined company while Arlington stockholders will own approximately 15%. The merged company is expected to have an equity capital base exceeding $1.5 billion and operate under “Ellington Financial Inc.,” trading on the NYSE under “EFC” ticker symbol.
Laurence Penn, Ellington Financial’s chief executive officer stated that this acquisition would bring about greater operating efficiencies as well as larger market capitalization along with attractive long-term unsecured debt and preferred equity capital opportunities for investors.
