IRVINE, Calif., Feb. 11 (UPI) -- ECC Capital of Irvine, Calif., Friday cut the price range for its pending initial public offering to $6.75 to $7.25 from $9 to $11.
The company also increased the offering size to 57.2 million shares from 49.6 million shares.
Of the total shares offered 4.69 million are for selling holders.
ECC Capital said it intends to use net proceeds from the IPO for general working capital purposes: to build a portfolio of mortgage loans, to maintain its real estate investment trust status and to purchase mortgage-backed securities. It won't receive any proceeds from the sale of shares by the selling holders, the filing said.
Friedman Billings Ramsey & Co., Stifel Nicolaus & Co., Flagstone Securities, JMP Securities and Roth Capital Partners were listed as the underwriters for the offering.
The underwriters have an option to purchase up to 8.68 million additional shares to cover over allotments.
ECC Capital was formed to build and manage a portfolio of sub-prime residential mortgage loans.
The company said it plans to list its shares on the New York Stock Exchange under the symbol ECR.
