Annaly Capital raises $1.3 billion to buy MBS

Annaly Capital (NLY) priced a public offering of 75 million shares Tuesday at $17.50 per share in an effort to raise $1.3 billion. The Maryland-based real estate investment trust said the money will be used to buy mortgage-backed securities for its investment portfolio and to repay some short-term debt. Annaly gave the underwriters a 30-day option to buy an additional 11.25 million shares of stock to cover overallotments. Credit Suisse, Barclays Capital, JPMorgan and RCap Securities are the book-running managers in the deal. In July, Annaly pulled a similar move, raising $1.1 billion from a public offering of 60 million shares of common stock. That cash went to purchase MBS as well. Write to Jon Prior.