XML 46 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
ISSUANCE OF 7 1/2% SERIES E PERPETUAL PREFERRED SHARES AND REDEMPTION OF SERIES A AND B PERPETUAL PREFERRED SHARES
3 Months Ended
Mar. 31, 2014
ISSUANCE OF 7.50% SERIES E PERPETUAL PREFERRED SHARES AND REDEMPTION OF SERIES A AND B PERPETUAL PREFERRED SHARES [Abstract]  
ISSUANCE OF 7.50% SERIES E PERPETUAL PREFERRED SHARES AND REDEMPTION OF SERIES A AND B PERPETUAL PREFERRED SHARES
NOTE 9 ¾ ISSUANCE OF 7.50% SERIES E PERPETUAL PREFERRED SHARES AND REDEMPTION OF SERIES A AND B PERPETUAL PREFERRED SHARES
 
In May 2013 Capstead completed a public offering of 6.8 million shares ($170.0 million face amount) of its 7.50% Series E Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share.  The Series E preferred shares are redeemable at the Company’s option for $25.00 per share, plus any accumulated and unpaid dividends, on or after May 13, 2018.  Proceeds of the offering after underwriting fees and other costs totaled $164.3 million and together with $42.7 million of cash on hand were used to fund the June 2013 redemption of the Company’s Series A and B perpetual preferred shares.
 
In late 2013 the Company began issuing additional Series E preferred shares through an at-the-market continuous offering program.  During the quarter ended March 31, 2014, the Company issued 56,000 Series E preferred shares at an average price of $23.83, net of expenses, for net proceeds of $1.3 million. Subsequent to quarter-end through May 9, 2014 the Company issued 92,000 Series E preferred shares at an average price of $23.96 net of expenses, for net proceeds of $2.2 million.  Modest additional amounts of Series E preferred capital may be raised in the future under this program subject to market conditions, compliance with federal securities laws and blackout periods associated with the dissemination of earnings and dividend announcements and other important Company-specific news.