Ellington Financial's Common Equity Funded Preferred Redemption: A Reshaping of the Investment Narrative.

Ellington Financial Inc. has completed a US$118.46 million common stock offering, issuing 8.775 million shares at US$13.50 each. The proceeds will be used to redeem all 4.6 million outstanding Series A 6.750% Fixed-to-Floating Rate Cumulative Redeemable Preferred shares at US$25.00 plus accrued dividends. This move simplifies Ellington Financial's capital structure, shifts capital permanently from preferred holders to common shareholders, and could reshape the investment narrative. The key catalyst is Ellington's ability to fund its US$0.13 monthly dividend from earnings despite ongoing dilution and debt.