Annaly Capital (NYSE:NLY) Plummets on Secondary Offering

After announcing the pricing of a secondary offering, shares of Annaly Capital (NYSE:NLY) plunged Tuesday.

In the early part of January, Annaly, a REIT firm, said they were going to implement a secondary offering. They priced the offering at $17.30 a share for its common stock, where they'll sell 75 million shares at that price, which would raise about $1.3 billion before expenses.

When they originally announced the secondary offering, Annaly said they were going to use most of the capital to invest in mortgage-backed securities and secondarily for general business purposes.

Annaly was trading at $17.40, down $0.55, or 3.04 percent, as of 1:02 PM EST. Volume was about 8 times its normal 3-month average.