New-York based REIT Cypress Sharpridge Investments plans to raise up to $142.8 million in an IPO of 18 million shares. In a filing with the Securities and Exchange Commission, Cypress said it expects the offering to price between $7 and $8 per share. The proceeds will be used to repay roughly $120 million of outstanding debt under Cypress' repurchase agreements. Cypress Sharpridge, which focuses on agency RMBS and subordinated ABS and CDOs, stated that its investment strategy will allow it to generate returns in a variety of interest rate scenarios, as well as capitalize on the rapid growth in the number of CDO securities in the secondary market.
Sallie Mae and its would-be private equity buyers may settle their differences in court, after the Reston, Va.-based student loan provider filed a lawsuit in the Delaware Chancery. At issue is whether steep lender subsidy cuts contained in the College Cost Reduction and Access Act constitute a materially adverse change (MAC), thereby negating the buyout group's obligation to finish the deal under its original terms.