Apollo Residential Mortgage Announces Pricing of $150 Million of 8.00% Perpetual Preferred Stock Offering

Apollo Residential Mortgage

today announced the Company sold 6,000,000 shares of 8.00% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") with a liquidation preference of $25 per share. In addition, the Company has granted the underwriters a 30-day option to purchase an additional 900,000 shares of the Series A Preferred Stock on the same terms and conditions. The offering is expected to close on or about September 20, 2012, subject to customary closing conditions. Morgan Stanley, UBS Investment Bank and J.P. Morgan are the joint book-running managers for the offering. Credit Suisse Securities (USA) LLC, RBC Capital Markets, Stifel Nicolaus Weisel, and JMP Securities are the co-managers for the offering. The Company estimates the net proceeds from the offering, after the underwriting discounts and commissions and estimated offering expenses payable by the Company, will be approximately $144.8 million, or approximately $166.6 million if the underwriters' option to purchase additional shares is exercised in full. The Company intends to use the net proceeds from this offering to acquire Agency residential mortgage backed securities ("RMBS"), non-Agency RMBS and other residential mortgage assets included in the Company's investment strategy.