Ellington Financial files 7'th S-11/A
Ellington Financial has filed a new S-11/A with the SEC. Thi filing removes the aspect that I think lead the previous IPO attempt to fail. Viz, that the company inteded to pay out only 50% of taxable income as cash dividends, while shareholders would be paying cash taxes on 100% of the companies income. This implied a very high effective tax rate on any cash distributions.
As of March 17th 2010:
Our present intention is to pay quarterly and special dividends to our common shareholders so that approximately 100% of our net income attributable to our common shares each calendar year, beginning with the 2010 calendar year, has been distributed prior to April of the subsequent calendar year, subject to potential adjustments for changes in common shares outstanding. In setting our dividends, our board of directors takes into account, among other things, our earnings, our financial condition, our working capital needs and new investment opportunities.
Labels: Ellington Financial