Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — SPAC Merger (July 2009)
10 slides from Armour Residential Reit's SPAC merger presentation, Jul 29, 2009
Slide 1: Forward-Looking Statement/Safe Harbor Statement Transaction Highlights
Forward-Looking Statement/Safe Harbor Statement Transaction Highlights Certain statements made in this presentation regarding the proposed merger between Enterprise Acquisition Corp. (“EAC”) and Armour Residential REIT, Inc. (“ARMOUR” or the “Company”), and any other statements regarding the parties
Slide 2: ARMOUR Proxy Portfolio Snapshot
ARMOUR Proxy Portfolio Snapshot
Slide 3: See details on the following pages
See details on the following pages
Slide 4: Asset Class Percentage of Portfolio
‘Asset Class Percent age of Portfolio Offered & Booked Speed Coupon Monthsto Reset Yield Book Grass Asset Duration ‘Asset Class Qurrent Yield FNMAS. Freddie MacMort gage Pools Pre-Pay Weighted Penaty | SeesonedHih | ARM=17- | A ccsesrt Low Bae Hybrid | Coupon 7/1 | Month'sto S (14th old | (nowt) Res
Slide 5: Net Portfolio Cash Returns Prior to Fees and Expenses
Net Portfolio Cash RetumsPrior to Fees and Expenses _$ 37,510,684 Cah Retum (2) oc | Retum on Dater Amount | Weldorrete | CMARAMIZ Or) | Tet ay $ 170R 48313 3213% $§ SOBA 27.44% $ 1614200155 0.450% $ (7263901) 363% S$ BM64N370250% § «= 986% $ 181206 3213% —§ 1901273 095% Grossincome (1}>> § 49,612,4
Slide 6: Proxy portfolio gross ROE opportunities, inclusive of financing and hedges
> Proxy portfolio gross ROE opportunities, inclusive of financing and hedges, since May ‘08 have ranged from 14% to 26% at 8x debt to equity leverage — Assumes 60-65% of non-true ARM assets are swapped out - Assumes gross asset duration at or below 2.5 - Assumes equity duration at or below 1.5 8xDeb
Slide 7: Investment Opportunity
Investment Opportunity Investment structure and elimination of sponsor promote creates pro forma company at an attractive valuation relative to publicly traded peers No Redemption Max Redemption ¹ Pro Forma Equity Value ($mm) ² $237.3 $100.2 Shares Outstanding (#mm) 25.1 10.8 Pro Forma BVPS $9.45 $9
Slide 8: Merger Steps Pro Forma Company
Merger Steps Pro Forma Company Enterprise New ARMOUR Public Armour Public Shareholders Residential Shareholders Management REIT Agreement Armour Armour A Enterprise erger._ += ARMOUR Residential ~~~ Residential Acquisition <——+ Merger REIT Management Corp. Corp. LLC > Enterprise Acquisition Corp. me
Slide 9: EST share converted to ARMOUR REIT share
EST share converted to ARMOUR REIT share Acquisition [Approved EST shareholder receives cash ($9.98) Common Shareholder Acquisition Ifunable to complete a transaction by 11/7/09, Rejected | trust liquidated to common shareholders Common Shares ‘Amended warrants remain outstanding Approve Vote "Yes"
Slide 10: ARMOUR
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