Key facts
- Ellington Financial Inc. plans to offer $100 million in 7.375% senior unsecured notes due in 2030.
- The new notes will be issued by subsidiaries and guaranteed by Ellington Financial.
- Proceeds will be used for general corporate purposes, including debt repayment and asset purchases.
- The offering follows strong second-quarter earnings and growth at Longbridge reverse mortgage subsidiary.
- Longbridge originated $589.7 million in reverse mortgages in the second quarter, up 38% year-over-year.
Ellington Financial Inc., the parent company of Longbridge Financial, announced on Monday its intention to offer $100 million in aggregate principal amount of 7.375% senior unsecured notes maturing in 2030. These notes will be issued by certain subsidiaries and will be treated as a single class with the $400 million of similar notes previously issued under the same indenture dated Oct. 6, 2025.
The company, a Connecticut-based real estate investment trust, stated that the net proceeds from the offering will be used for general corporate purposes. This includes repaying a portion of its outstanding repurchase-agreement borrowings and acquiring additional assets aligned with its investment strategies.
The offering comes on the heels of Ellington Financial's strong second-quarter performance, which included $75.5 million in adjusted distributable earnings. Its Longbridge reverse mortgage subsidiary saw significant growth, originating $589.7 million in reverse mortgages, a 38% increase compared to the previous year. During its earnings call, company leadership also indicated progress toward acquiring a special servicer to manage distressed borrowers and reduce delinquencies.