SOURCE: Apollo Residential Mortgage, Inc.

Apollo Residential Mortgage, Inc.

July 21, 2011 19:44 ET

Apollo Residential Mortgage, Inc. Announces Pricing of Initial Public Offering of Common Stock

NEW YORK, NY--(Marketwire - Jul 21, 2011) - Apollo Residential Mortgage, Inc. (the "Company") (NYSE: AMTG) announced today the pricing of its initial public offering of 10,000,000 shares of its common stock, at a price to the public of $20.00 per share, for gross proceeds of $200 million. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock to cover overallotments, if any. The Company's shares are scheduled to begin trading on July 22, 2011 on the New York Stock Exchange under the ticker symbol "AMTG." The Company is externally managed and advised by ARM Manager, LLC (the "Manager"), a recently formed indirect subsidiary of Apollo Global Management, LLC (together with its subsidiaries, "Apollo").

Concurrent with the completion of the initial public offering, the Company will complete a private placement of 250,000 shares of common stock, at a price per share equal to the initial public offering price, to certain affiliates and personnel of Apollo, including personnel of the Manager.

The estimated net proceeds to the Company from the initial public offering and the concurrent private placement, after the payment of related expenses payable by the Company, are expected to be approximately $203 million (assuming the underwriters' overallotment option is not exercised), or approximately 99% of the gross proceeds. The Company plans to deploy the net proceeds from the initial public offering and the concurrent private placement predominately for the purchase of Agency MBS assets.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are acting as joint book runners of the public offering. JMP Securities LLC, Nomura Securities International, Inc., Stifel, Nicolaus & Company, Incorporated and RBS Securities Inc. are acting as co-managers.

A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of a prospectus.

The shares sold in the concurrent private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The Company expects to close the initial public offering and concurrent private placement on or about Wednesday, July 27, 2011, subject to the satisfaction of customary closing conditions.

When available, copies of the prospectus may be obtained by calling Morgan Stanley toll-free at (866) 718-1649, Credit Suisse toll-free at (800) 221-1037 or J.P. Morgan toll free at (866) 803-9204.

About Apollo Residential Mortgage, Inc.

The Company is a newly organized residential real estate finance company that has been formed primarily to invest in, finance and manage mortgage-backed securities, residential mortgage loans and other residential mortgage assets in the United States. The Company is externally managed and advised by ARM Manager, LLC, a Delaware limited liability company, an indirect subsidiary of Apollo Global Management, LLC.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition and liquidity, results of operations, plans and objectives. When the Company uses the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, the Company intends to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: use of the proceeds of the offering; market trends in the Company's industry, interest rates, real estate values, the debt securities markets, the U.S. housing market or the general economy or the demand for residential mortgage loans; the Company's business and investment strategy; the Company's or any other companies' projected operating results; actions and initiatives of the U.S. government and changes to U.S. government policies and the execution and impact of these actions, initiatives and policies; the state of the U.S. economy generally or in specific geographic regions; economic trends and economic recoveries; the Company's ability to obtain and maintain financing arrangements, including securitizations; the favorable Agency MBS return dynamics available; the level of government involvement in the U.S. mortgage market; the anticipated lower default rates on non-Agency MBS; the return of the non-Agency MBS securitization market; general volatility of the securities markets in which the Company participates; changes in the value of the Company's assets; the Company's expected portfolio of assets; the Company's expected investment and underwriting process; interest rate mismatches between the Company's target assets and any borrowings used to fund such assets; changes in interest rates and the market value of the Company's target assets; changes in prepayment rates on the Company's target assets; effects of hedging instruments on the Company's target assets; rates of default or decreased recovery rates on the Company's target assets; the degree to which the Company's hedging strategies may or may not protect the Company from interest rate volatility; impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; the Company's ability to maintain the Company's qualification as a REIT for U.S. federal income tax purposes; the Company's ability to maintain the Company's exemption from registration under the Investment Company Act of 1940, as amended; availability of opportunities to acquire Agency MBS, non-Agency MBS, residential mortgage loans and other residential mortgage assets; availability of qualified personnel; estimates relating to the Company's ability to make distributions to its stockholders in the future; and the Company's understanding of its competition.

The forward-looking statements are based on the Company's beliefs, assumptions and expectations of the Company's future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company. Some of these factors are described under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" in the Company's final prospectus relating to this offering, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the Company's forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

    Stuart Rothstein
    (212) 822-0722