Anworth: Stock Repurchase Program and Series B Adjusted Conversion Rate

  Anworth: Stock Repurchase Program and Series B Adjusted Conversion Rate

Business Wire

SANTA MONICA, Calif. -- December 23, 2013

Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that its board
of directors had authorized the Company to acquire up to an additional
5,000,000 shares of its common stock under its share repurchase program
effective December 23, 2013. The shares are expected to be acquired at
prevailing prices through open market transactions. The manner, price, number
and timing of share repurchases will be subject to market conditions and
applicable U.S. Securities and Exchange Commission rules. From October 1
through December 20, 2013, the Company had repurchased an aggregate of
2,816,274 shares of its common stock at a weighted average price of $4.42 per
share through its existing share repurchase program.

Also, in accordance with the terms of Anworth’s 6.25% Series B Cumulative
Convertible Preferred Stock, or Series B Preferred Stock, the Company
announced that the conversion rate of the Series B Preferred Stock will
increase from 3.9702 shares of Anworth’s common stock to 3.9881 shares of its
common stock effective December 24, 2013.

As previously announced on December 13, 2013, Anworth’s board of directors
declared a quarterly common stock dividend of $0.08 per share, which is
payable on January 29, 2014 to holders of record of common stock as of the
close of business on December 23, 2013. When Anworth pays a cash dividend
during any quarterly fiscal period to its common stockholders in an amount
that results in an annualized common stock dividend yield greater than 6.25%
(the dividend yield on the Series B Preferred Stock), the conversion rate on
the Series B Preferred Stock is adjusted based on a formula specified in the
Articles Supplementary Establishing and Fixing the Rights and Preferences of
the Series B Preferred Stock (and also available on the “Series B Pfd. Stock
Conversion” page of Anworth’s web site at http://www.anworth.com). As a result
of this dividend, the conversion rate will increase from 3.9702 shares of
Anworth’s common stock to 3.9881 shares of its common stock effective December
24, 2013.

About Anworth Mortgage Asset Corporation

Anworth is an externally-managed mortgage real estate investment trust. We
invest primarily in securities guaranteed by the U.S. Government, such as
Ginnie Mae, or guaranteed by federally sponsored enterprises, such as Fannie
Mae or Freddie Mac. We seek to generate income for distribution to our
shareholders primarily based on the difference between the yield on our
mortgage assets and the cost of our borrowings. We are managed by Anworth
Management, LLC, or the Manager, pursuant a management agreement. The Manager
is subject to the supervision and direction of our Board of Directors and is
responsible for (i) the selection, purchase and sale of our investment
portfolio; (ii) our financing and hedging activities; and (iii) providing us
with management services and other services and activities relating to our
assets and operations as may be appropriate. Our common stock is traded on the
New York Stock Exchange under the symbol “ANH.” Anworth is a component of the
Russell 2000® Index.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

This news release may contain forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based upon our current expectations
and speak only as of the date hereof. Forward-looking statements, which are
based on various assumptions (some of which are beyond our control) may be
identified by reference to a future period or periods or by the use of
forward-looking terminology, such as “may, ” “will, ” “believe, ” “expect, ”
“anticipate, ” “assume,” “estimate,” “intend,” “continue, ” or other similar
terms or variations on those terms or the negative of those terms. Our actual
results may differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors and uncertainties,
including but not limited to, changes in interest rates; changes in the market
value of our mortgage-backed securities; changes in the yield curve; the
availability of mortgage-backed securities for purchase; increases in the
prepayment rates on the mortgage loans securing our mortgage-backed
securities; our ability to use borrowings to finance our assets and, if
available, the terms of any financing; risks associated with investing in
mortgage-related assets; changes in business conditions and the general
economy, including the consequences of actions by the U.S. government and
other foreign governments to address the global financial crisis;
implementation of or changes in government regulations affecting our business;
our ability to maintain our qualification as a real estate investment trust
for federal income tax purposes; our ability to maintain an exemption from the
Investment Company Act of 1940, as amended; and the Manager’s ability to
manage our growth. Our Annual Report on Form 10-K and other SEC filings
discuss the most significant risk factors that may affect our business,
results of operations and financial condition. We undertake no obligation to
revise or update publicly any forward-looking statements for any reason.

Contact:

Anworth Mortgage Asset Corporation
John T. Hillman
(310) 255-4438 or (310) 255-4493
jhillman@anworth.com
http://www.anworth.com
 
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