Five Oaks Investment, an XL-backed mortgage REIT focused on Agency and non-Agency RMBS, changed the structure of its IPO on Wednesday. The company now plans to sell 4.0 million shares in its IPO and 1.7 million shares to XL in a separate, concurrent private placement. Originally, the company had planned a 5.7 million share IPO, which included XL's purchase of 1.7 million shares. As such, the amount of capital raised by the company remains at $85.5 million and the public post-IPO float remains at $60.5 million, even though the size of the IPO technically drops by 29%. The change was apparently made in response to a comment from the Staff of the SEC.
Five Oaks Investment, which was founded in 2012 and booked $6 million in sales for the 12 months ended 12/31/2012, plans to list on the NYSE under the symbol OAKS. Five Oaks Investment initially filed confidentially on 10/19/2012. Barclays, Credit Suisse, UBS Investment Bank and Keefe, Bruyette & Woods are the joint bookrunners on the deal.
