NLY: ﹩442.5 Million Series I Preferred Redemption Set
Annaly Capital Management said on August 19, 2026, that it will redeem all 17.7 million outstanding shares of its Series I fixed-to-floating-rate cumulative preferred stock.
The redemption price is ﹩25 per share, making the total cash requirement ﹩442.5 million based on the share count and price disclosed by Annaly. Payment is scheduled for October 1. The company said it has declared and will have paid dividends through September 30, so no accrued and unpaid dividends will remain on the redemption date.
After October 1, dividends on the Series I shares will stop accumulating and holders’ rights will end except for the right to receive the redemption payment.
Why it matters
The transaction removes the Series I issue from Annaly’s preferred-capital stack and ends its future dividend obligation. That can simplify the capital structure and may improve funding costs, but the final effect depends on how Annaly funds the ﹩442.5 million payment.
The announcement does not identify whether the company will use cash, asset proceeds, borrowings or replacement capital. For common shareholders, fewer preferred claims rank ahead of the common stock, while the cash outlay could reduce liquidity or change leverage if it is not offset elsewhere.
What to watch
The next financial update should show the redemption’s funding source and its effect on preferred equity, liquidity, leverage and book value. Until then, the net impact on common shareholders remains uncertain.
Sources
- Annaly Capital Management, Series I redemption announcement, August 19, 2026
- Annaly Capital Management, Form 8-K, filed August 19, 2026
- Annaly Capital Management, second-quarter 2026 results
This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.