February 10, 2010 (FinancialWire) — Annaly Capital Management, Inc. (NYSE: NLY) has priced a public offering of $500.0 million in aggregate principal amount of its 4% convertible senior notes due 2015.

The company granted the underwriter of the notes a thirty-day option to purchase up to an additional $75.0 million aggregate principal amount of the notes solely to cover over-allotments.

The company expects to see net proceeds of around $484.8 million. Annaly plans to use the proceeds of this offering to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes.

The offering is scheduled to close February 12, 2010, subject to customary closing conditions.

Interest on the notes will be paid semi-annually at a rate of 4% per year and the notes will mature on February 15, 2015 unless earlier repurchased or converted.

The notes will be convertible into shares of Annaly’s common stock. The notes will be convertible at an initial conversion rate of 46.6070 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $21.456 per share of common stock, subject to adjustment in certain circumstances.

New York-based Annaly Capital Management is a real estate investment trust focused on the government sponsored mortgage-backed securities market.

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