Annaly Capital Wipes Out Its Series I Preferred Stock, Reclassifying All 17.7 Million Shares As Common Equity

Annaly Capital Management erased its entire 6.750% Series I preferred stock class this week, redeeming all 17,700,000 shares on October 1 and then reclassifying them as common stock the following day, according to an 8-K filed Friday with the SEC. The move eliminates a fixed-to-floating rate obligation from Annaly's preferred stack and folds that capital back into the common equity base.

What The 8-K Says

The filing, signed by Chief Financial Officer Serena Wolfe, lays out a two-step sequence. On October 1, Annaly redeemed all 17,700,000 issued and outstanding shares of its 6.750% Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, each carrying a par value of $0.01 per share.

The day after, on Friday, the company filed Articles Supplementary with Maryland's State Department of Assessments and Taxation. That filing — effective the same day — reclassified and redesignated all 17,700,000 of those redeemed Series I shares as shares of common stock, also at $0.01 par value per share.

The practical result: as of Friday, no shares of Series I Preferred Stock remain authorized, issued, or outstanding. The class no longer exists on Annaly's books.

What Changes For The Capital Structure

The Series I carried a fixed-to-floating rate structure at 6.750%, meaning its cost to Annaly would have shifted over time as rates moved. Retiring the class removes that obligation entirely, shrinking the company's total preferred share count by 17.7 million shares.

Annaly still lists three preferred series on the New York Stock Exchange: the 6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, the 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, and the 8.875% Series J Fixed-Rate Cumulative Redeemable Preferred Stock. All three remain active and registered under Section 12(b) of the Securities Exchange Act, according to the filing.

NLY shares edged up about 0.27% to $18.55 in Friday after-hours trading following the disclosure, a preliminary move after the stock closed the regular session at $18.50, down about 1.07% on the day (market data).

What To Watch

With the Series I gone, investors will be looking at whether Annaly moves to redeem any of its three remaining preferred series — the 6.95% Series F, the 6.50% Series G, or the 8.875% Series J — as part of a broader effort to simplify its capital structure. The Series I redemption is the clearest signal yet that management is willing to act on its preferred stack, but the filing makes no mention of plans for the remaining three classes.

The Articles Supplementary filed with Maryland's State Department of Assessments and Taxation on Friday are attached as Exhibit 3.1 to the 8-K, and the filing was signed by CFO Serena Wolfe on October 2, 2026.

Sources

• 8-K Filing — ANNALY CAPITAL MANAGEMENT INC (NLY) — SEC EDGAR