N@N

CreXus Investment Corp. Announces Commencement of Public Offering of Common Stock

^{Published on 2011-03-21 03:40:20 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--CreXus Investment Corp. (NYSE:CXS) announced today that it has commenced an underwritten public offering of 50,000,000 shares of common stock. The company also intends to grant the underwriters a 30-day option to purchase up to 7,500,000 additional shares of common stock to cover overallotments, if any. Concurrent with this offering, Annaly Capital Management, Inc. is expected to acquire 5,000,000 shares of CreXus Investment Corp. in a private placement.

The Company expects to use the net proceeds from the offering and the concurrent private placement primarily to fund the recently announced the acquisition of a portfolio of commercial real estate assets, which is targeted to close during mid-April 2011. Any remaining net proceeds will be used for the acquisition of additional investments in our targeted assets and for general corporate purposes.

Credit Suisse, Barclays Capital, BofA Merrill Lynch and Deutsche Bank Securities are acting as joint book-running managers for the offering, and J.P. Morgan, Morgan Stanley, UBS Investment Bank and Wells Fargo Securities are acting as joint-lead managers and RCap Securities is acting as co-lead manager.

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act. These securities are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction where the offer, solicitation, or sale of these securities would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

A preliminary prospectus supplement and final prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission. Copies of the preliminary prospectus supplement and final prospectus supplement, when available, may be obtained by contacting:

CreXus acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate-related debt, commercial mortgage-backed securities, other commercial real estate-related assets and, to the extent necessary for regulatory purposes, residential mortgage-backed securities. Our principal business objective is to provide attractive risk-adjusted returns to our investors over the long-term, primarily through dividends and secondarily through capital appreciation. The investment manager of CreXus is Fixed Income Discount Advisory Company (FIDAC), a wholly-owned subsidiary of Annaly Capital Management, Inc. We are a Maryland corporation that has elected to be taxed as a real estate investment trust (aREITa).

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the shares. An offering of the shares will be made only by means of a prospectus supplement and accompanying prospectus. The prospectus supplement and the accompanying prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Statements in this press release contain aforward lookinga information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve a number of risks and uncertainties. Those factors include conditions in the financial markets and customary offering closing conditions. Please see CreXusa™s filing with the SEC for certain other factors that may affect forward-looking information.