Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.) (FBR) announced that the company and FBR Capital Markets Corp. (FBCM) closed the repurchase transaction that was previously announced on May 18, 2009. At the closing, the company sold, and FBR Capital Markets purchased, 16.67 million shares of FBR Capital Markets common stock at a purchase price of $4.35 per share.
Arlington received $72.5 million in gross cash proceeds from the sale. Immediately following the closing, the company beneficially owned 16.67 million shares of FBR Capital Markets common stock.
As of the closing of the transaction, Arlington will no longer control and, therefore, will no longer consolidate FBR Capital Markets Corporation in its financial statements. Accordingly, in the second quarter of 2009, Arlington will record a pre-tax loss on the shares sold of about $10.2 million.
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