What is the Convertible feature of the Series B Preferred Stock?
• The conversion feature allows the shareholder to convert all or part of their holding to Annaly common stock. The initial conversion is 1.7730 shares of common stock for each convertible preferred share; this is equivalent to a common price of $14.10 (based on the initial offering price of $25.00 per share). There are adjustments made to the convertible feature based on certain business circumstances, see the prospectus for details.
