NEW YORK--(BUSINESS WIRE)--April 14, 2005--Annaly Mortgage
Management, Inc.
(NYSE: NLY) is pleased to announce that its
wholly-owned subsidiary, FIDAC, is the investment manager for Prodesse
Investment Limited, an investment company launched on April 6.
Prodesse, which is listed on the London Stock Exchange under the
ticker PRD, raised US$265 million in the initial public offering
(before the exercise of the over-allotment option of up to 15% by the
underwriters). UBS Investment Bank
was the sole global co-ordinator,
bookrunner, financial advisor and sponsor, and Merrill Lynch
International was joint lead manager.
The investment strategy of Prodesse, a newly established limited
liability Guernsey-incorporated closed-end investment company, is to
provide net income for distribution to shareholders from the spread
between the interest income earned from a portfolio of residential
mortgage-backed securities and the cost of repurchase agreements used
to finance their acquisition. Prodesse will utilize leverage within a
debt-to-equity band of 5:1 to 10:1. For its services, FIDAC will be
paid a management fee of 20 basis points based on gross assets under
management.
Ron Kazel, Executive Vice President for Annaly, commented on the
launch of Prodesse. "Our FIDAC team has worked hard to create a
structure that is designed to generate a tax-efficient, compelling
investment yield using high credit-quality assets. 'Prodesse' comes
from the Annaly motto, 'Prodesse Non Nocere', which means 'proceed
without fear.' We continue to proceed with expanding our asset
management business through this offering and look forward to
expanding our presence around the world."
Annaly manages assets on behalf of institutional and individual
investors worldwide through Annaly and through the funds managed by
its wholly-owned registered investment advisor, FIDAC. At December 31,
2004, Annaly and FIDAC had gross assets under management of
approximately $36 billion. Annaly's principal business objective is to
generate net income for distribution to investors from the spread
between the interest income on its mortgage-backed securities and the
cost of borrowing to finance their acquisition and from dividends the
Annaly receives from FIDAC, which earns investment advisory fee
income. Annaly, a Maryland Corporation, has elected to be taxed as a
real estate investment trust ("REIT").
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. 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," "continue," or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, FIDAC's clients removal of
assets FIDAC manages, FIDAC's regulatory requirements, and competition
in the investment management business. For a discussion of the risks
and uncertainties which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk factors"
in our Annual Report on Form 10-K for the fiscal year ended December
31, 2004. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
CONTACT: Annaly Mortgage Management, Inc.
Investor Relations:
1-888-8Annaly
www.annaly.com
SOURCE: Annaly Mortgage Management, Inc.