Orchid Island Capital Enters Equity Distribution Agreement

Orchid Island Capital, Inc. announced on February 24, 2025, that it has entered into an equity distribution agreement with Bimini Advisors, LLC and a group of sales agents that includes J.P. Morgan Securities LLC, BTIG, LLC, Citizens JMP Securities, LLC, and JonesTrading Institutional Services LLC. Under the terms of the agreement, the Company may, from time to time, offer and sell up to an aggregate of $350 million of its common stock.

The shares, which carry a par value of $0.01 per share, may be offered as “at the market” offerings under Rule 415 of the Securities Act of 1933. This approach allows the shares to be sold directly on the New York Stock Exchange or through market makers, as well as through negotiated transactions including block trades. Sales agents involved in these transactions are entitled to compensation of up to 2.0% of the gross proceeds derived from the sale of the shares.

The offering will take place pursuant to the Company’s Registration Statement on Form S-3, and a related prospectus supplement was filed on February 24, 2025, supplementing a prospectus dated January 27, 2023. Although the company’s filing provides flexibility to offer shares in the future, Orchid Island Capital is not obligated to sell any portion of the shares under this agreement and reserves the right to suspend solicitations at any time.

The equity distribution agreement is detailed further in the company’s SEC filing, which also includes an opinion from counsel regarding the legality of the shares, as provided by Vinson & Elkins L.L.P. This filing contains forward-looking statements pertaining to the offer and sale of shares and includes cautionary language regarding the inherent uncertainties of future outcomes, referring investors to risk factors discussed in the Company’s Annual Report on Form 10-K for further details.

This development represents a strategic move by Orchid Island Capital to enhance its capital-raising capabilities as market conditions allow.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Orchid Island Capital’s 8K filing here.

Orchid Island Capital Company Profile

Orchid Island Capital, Inc, a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities.