CXS - Crexus Investment Corp NYSE Stock

[BadThad]

Crexus Investment Corp. is a specialty finance company that acquires, manages, and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial mortgage-backed securities (CMBS), and other commercial real estate-related assets. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and capital appreciation. The Company is externally managed by Fixed Income Discount Advisory Company (FIDAC). FIDAC is a wholly-owned subsidiary of Annaly Capital Management, Inc. The Company focuses on acquiring assets that include Commercial Real Estate Loans, Commercial Mortgage-Backed Securities (CMBS), Other Commercial Real Estate Assets and Agency RMBS.

Crexus Investment Corp: NYSE:CXS quotes & news - Google Finance

Current stock price: $11.40
52-wk range: 11.30 - 13.89
Dividend Yield: 7.57%

I'm looking at this as a bottom play, trading near it's 52 wk low (set today). An offer to buy from STWD is on the table....one report said it was turned down, but then that article was removed....not sure without some more DD.

[BadThad]

Hummm....hard do believe they would turn down an offer to buy. Today they annouce dilution!

CreXus Investment Corp. Announces Pricing of Common Stock Offering
NEW YORK--(BUSINESS WIRE)--CreXus Investment Corp. (NYSE:CXS) announced today that it has priced an underwritten public offering of 50 million shares of common stock at $11.50 per share for estimated gross proceeds of approximately $575 million. CreXus has also granted the underwriters a 30-day option to purchase up to an additional 7.5 million shares of common stock to cover over-allotments. CreXus expects to raise net proceeds of approximately $539 million in the public offering, after deducting the underwriting discount, estimated offering expenses and estimated unpaid expenses incurred in connection with CreXus’ recently announced acquisition of a portfolio of commercial real estate assets.

Concurrent with this offering, Annaly Capital Management, Inc., the parent corporation of CreXus’ external manager, Fixed Income Discount Advisory Company, will acquire 5 million shares of CreXus’ common stock in a private placement at the same price per share as the price per share of the public offering. No underwriting discount is payable in connection with the sale of shares to Annaly. These offerings are both expected to close on or about April 1, 2011. All of the shares in these offerings are being offered by CreXus.

CreXus expects to use the net proceeds from these offerings to fund its recently announced acquisition of a portfolio of commercial real estate assets, which is targeted to close during mid-April 2011. Any remaining net proceeds will be used for the acquisition of additional investments in CreXus’ targeted assets and for general corporate purposes.

Credit Suisse, Barclays Capital, BofA Merrill Lynch and Deutsche Bank Securities are acting as joint book-running managers for the offering, and J.P. Morgan, Morgan Stanley, UBS Investment Bank and Wells Fargo Securities are acting as joint-lead managers and RCap Securities is acting as co-lead manager.

[BadThad]

More news on the offer:

CreXus Investment Corp.'s (CXS) board of directors rejected a $255 million takeover bid from Starwood Property Trust Inc. (STWD) just hours after the bid was made public, and CreXus said it would go forward with plans to sell at least 55 million shares.
Starwood earlier Monday said it had submitted a takeover offer of $255 million in stock to CreXus's board that was contingent on the commercial real-estate financing company suspending its plans to sell the stock.
CreXus didn't specify why the board rejected the offer, and it said it would go through with its previously announced plans to sell the shares to fund the acquisition of a portfolio of commercial real-estate assets from a Barclays PLC (BCS, BARC.LN) unit for $586 million.
In turn, Starwood reiterated that its offer would be withdrawn if CreXus prices the stock offering, slated to happen Monday.
Under the terms of Starwood's offer, shareholders of Crexus--which had about 18.2 million shares outstanding as of March 18, shortly before the stock sale was unveiled--would receive 0.61 Starwood Property Trust shares for each Crexus share, valuing the company at about $14 a share. The offer represents a 17% premium to Crexus's closing price Friday. The stock hasn't traded above $14 in more than a year.
CreXus shares were recently up 4 cents to $12, while Starwood was off 19 cents to $22.87.
CreXus's bottom line has improved sequentially on higher interest and noninterest income each quarter since its initial public offering in late 2009. Starwood is a real-estate investment trust created in the wake of the financial crisis seeking real estate-related assets on the cheap as prices tumbled.
Starwood Chairman and Chief Executive Barry Sternlicht said holders would receive shares in a "significantly more liquid entity without facing the substantial book value dilutions of CreXus's pending equity offering."
He also said Starwood would be willing to complete the Barclays transaction but requires up to five days to review the portfolio and completion of the transaction isn't a condition of the deal.