Annaly Capital (NYSE: NLY) calls all 6.75% Series I preferred
Annaly Capital Management (NLY) announced the redemption of all 17.7M outstanding shares of its 6.75% Series I Preferred Stock. The redemption price is $25 per share, payable on October 1, 2026. The company has paid all accrued dividends through September 30, 2026.
How this was made
The 30-second read
Why it matters
The redemption removes a fixed‑to‑floating rate security, reduces future dividend obligations, and may modestly depress the common share price.
Market read
Primary corporate action for a mid‑cap REIT; relevant for holders of the preferred and common equity, as well as sector investors.
What to watch
Potential tax implications for preferred holders and the impact on Annaly's leverage ratios.
Background
Annaly Capital Management, a mortgage REIT, filed an 8‑K detailing the redemption of its 6.75% Series I preferred shares.
Ticker impact
Annaly Capital announced redemption of all 17.7M Series I preferred shares at $25 each, payable Oct 1, 2026.
Common stock may trade slightly lower as cash outflow is priced in; preferred price will align to $25.
The redemption is a material cash outflow (~$442M) and eliminates dividend accruals, likely causing a modest price adjustment.
Market effects
May slightly affect REIT sector pricing as cash‑heavy redemption could signal balance‑sheet management trends.
U.S. REIT market may see minor price adjustments in similar mortgage‑backed securities.
Limited to investors with exposure to Annaly and comparable mortgage REITs.
Counterpoint
If the redemption is viewed as a strategic cleanup, the common stock could be a buying opportunity at a discount.
Key entities
- companyAnnaly Capital Management, Inc.
Issuer of the redeemed Series I preferred shares.
- service_providerComputershare Inc.
Redemption and paying agent handling the share surrender.
