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CreXus Investment Corp. Announces Pricing of Common Stock Offering

^{Published on 2011-03-28 15:05:20 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--CreXus Investment Corp. (NYSE:CXS) announced today that it has priced an underwritten public offering of 50 million shares of common stock at $11.50 per share for estimated gross proceeds of approximately $575 million. CreXus has also granted the underwriters a 30-day option to purchase up to an additional 7.5 million shares of common stock to cover over-allotments. CreXus expects to raise net proceeds of approximately $539 million in the public offering, after deducting the underwriting discount, estimated offering expenses and estimated unpaid expenses incurred in connection with CreXusa™ recently announced acquisition of a portfolio of commercial real estate assets.

Concurrent with this offering, Annaly Capital Management, Inc., the parent corporation of CreXusa™ external manager, Fixed Income Discount Advisory Company, will acquire 5 million shares of CreXusa™ common stock in a private placement at the same price per share as the price per share of the public offering. No underwriting discount is payable in connection with the sale of shares to Annaly. These offerings are both expected to close on or about April 1, 2011. All of the shares in these offerings are being offered by CreXus.

CreXus expects to use the net proceeds from these offerings to fund its recently announced 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 CreXusa™ 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.

CreXus has filed a shelf registration statement and prospectus with the Securities and Exchange Commission (SEC), as well as a prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus supplement and the accompanying prospectus and other documents CreXus has filed with the SEC for more complete information about CreXus and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at [ http://www.sec.gov ]. Alternatively, CreXus, the underwriters or any dealer participating in the offering will arrange to send you the prospectus supplement and accompanying prospectus if you request them 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™ filing with the SEC for certain other factors that may affect forward-looking information.