DALLAS — Capstead Mortgage Corp. announced Monday that it expects to repurchase about 554,000 of its common shares through a tender offer made last month, just 11% of the upper limit it had set.

The tender offer, based on a fixed price of $12.75 a share, started Feb. 16 and ended at midnight Friday. When it was announced, Capstead said it would buy up to five million shares, or about 20% of its issued and outstanding common stock.

The company said it now expects to buy about 2% of its shares outstanding. Merrill Lynch & Co. was the dealer-manager of the tender offer. Capstead is a mortgage investment company with assets of about $8 billion. Its shares have traded at about $12 since Jan. 1 and were trading at $13.30 midday Tuesday, up 4.6% from Friday’s close.

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