Annaly Capital to sell its mid-market loan portfolio to Ares for around $2.4 billion
Management Corp said on Monday it had agreed to buy the middle market loan portfolio of
Annaly Capital Management
for about $2.4 billion.
Annaly (ticker: NLY), a mortgage real estate investment trust, said it was selling most of the middle market loan assets it holds on its balance sheet, as well as assets it manages for third parties. Annaly expects the transaction, which is expected to close in the second quarter, to be book value accretive.
Last year, Annaly sold her commercial real estate business to investment firm Slate Asset Management for $2.33 billion as she sought to focus on her core business of residential mortgage financing.
Annaly shares have fallen 19% since January, with the stock closing Monday at $6.53. Several analysts have a “grip” on the stock, with an average price target of $7.25, according to FactSet.
Ares (ARES), an alternative investment manager, said there is substantial overlap with private equity firms backing Annaly’s portfolio, as well as opportunities to strengthen ties with private equity firms. news from Ares. “This acquisition offers significant occupancy and transaction sourcing benefits, as well as relationship benefits, which we believe will lead to greater returns for our investors,” said Mitchell Goldstein and Michael Smith, Partners and co-heads of Ares’ credit group, in a statement.
Ares stock rebounded from a low of $66.37 in March, closing Monday at $76.54. Ares currently has $314 billion in assets under management, up from $25 billion in 2008. Several analysts are pricing the stock as a “buy” with an average price target of $97.
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