Ellington Financial Inc. (NYSE: EFC) announced on September 17, 2026, that it has closed the sale of $150.0 million in aggregate principal amount of 7.375% senior unsecured notes due 2030. The notes were issued by subsidiaries of the company, including Ellington Financial Operating Partnership LLC, EF Holdco Inc., EF Cayman Holdings Ltd., Ellington Financial REIT Cayman Ltd., and Ellington Financial REIT TRS LLC. The offering was conducted as a private placement to qualified institutional buyers in the United States under Rule 144A and to non-U.S. persons outside the United States under Regulation S.
The notes were issued at a price of 99.010% of their principal amount, resulting in a yield to maturity of 7.663%. They are senior unsecured obligations of the Issuers and are fully and unconditionally guaranteed by Ellington Financial Inc. The notes are being issued as additional notes under an indenture dated October 6, 2025, with Wilmington Trust, National Association, serving as trustee. This issuance brings the total outstanding principal amount of the 7.375% senior unsecured notes due 2030 to $550.0 million, combining the previously issued $400 million and this new tranche.
Ellington Financial expects to use the net proceeds from this offering for general corporate purposes. Specifically, the company intends to repay a portion of its borrowings under outstanding repurchase agreements and fund the purchase of additional assets in accordance with its investment objectives and strategies. The notes will mature on September 30, 2030, and bear interest at a rate of 7.375% per year, payable semi-annually on March 31 and September 30. The first interest payment is scheduled for September 30, 2026, to holders of record on September 17, 2026.
The indenture governing the notes includes covenants that limit the ability of the company and its subsidiaries to incur additional indebtedness. It also requires the company to maintain a ratio of consolidated unencumbered assets to unsecured indebtedness of at least 1.20 to 1.0. Additionally, the notes contain provisions regarding optional redemption and change of control triggering events, allowing for redemption at specific premiums prior to maturity and offering holders the right to demand a cash purchase at 101.0% of the principal amount in the event of a change of control.
