Item 3.03 Material Modification to Rights of Security Holders.
On September 30, 2020, Anworth Mortgage Asset Corporation ("Anworth") announced
that in accordance with the terms of Anworth's 6.25% Series B Cumulative
Convertible Preferred Stock (the "Series B Preferred Stock"), the conversion
rate of the Series B Preferred Stock has increased from 6.0021 shares of
Anworth's common stock to 6.1874 shares of its common stock effective October 1,
2020.
As previously announced on September 16, 2020, the Board of Directors of Anworth
declared a quarterly common stock dividend of $0.05 per share, which is payable
on October 29, 2020 to holders of record of Anworth's common stock as of the
close of business on September 30, 2020. When Anworth pays a cash dividend
during any quarterly fiscal period to its holders of common stock in an amount
that results in an annualized common stock dividend yield greater than 6.25%
(the dividend yield on the Series B Preferred Stock), the conversion rate on the
Series B Preferred Stock is adjusted based on a formula specified in the
Articles Supplementary Establishing and Fixing the Rights and Preferences of the
Series B Preferred Stock. As a result of this dividend, the conversion rate of
the Series B Preferred Stock has increased from 6.0021 shares of Anworth's
common stock to 6.1874 shares of its common stock effective October 1, 2020.
Item 8.01 Other Events.
On September 30, 2020, Anworth issued a press release (the "Press Release")
announcing that in accordance with the terms of Anworth's 6.25% Series B
Cumulative Convertible Preferred Stock ("Series B Preferred Stock"), the
conversion rate of the Series B Preferred Stock has increased from 6.0021 shares
of Anworth's common stock to 6.1874 shares of its common stock effective October
1, 2020.
A copy of the Press Release is filed as Exhibit 99.1 to this Current Report on
Form 8-K.
As discussed therein, the Press Release contains forward-looking statements
within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act and, as such, may involve known and unknown risks, uncertainties
and assumptions. These forward-looking statements relate to Anworth's current
expectations and are subject to the limitations and qualifications set forth in
the press release as well as in Anworth's other documents filed with the U.S.
Securities and Exchange Commission, including, without limitation, that actual
events and/or results may differ materially from those projected in such
forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(a) Not Applicable.
(b) Not Applicable.
(c) Not Applicable.
(d) Exhibits.
Exhibit 99.1 Press Release dated September 30, 2020 announcing an
increase to the conversion rate of Anworth's 6.25% Series
B Cumulative Convertible Preferred Stock effective October
1, 2020.
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