Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-69848 February 7, 2007 ANTHRACITE 3,000,000 SHARES 8.25% SERIES D CUMULATIVE REDEEMABLE PREFERRED STOCK $25.00 PER SHARE FINAL TERM SHEET As used in this Free Writing Prospectus, the terms "we," "our" and "us" refer to Anthracite Capital, Inc. ISSUER: Anthracite Capital, Inc. SECURITIES OFFERED: 3,000,000 shares of our 8.25% Series D Cumulative Redeemable Preferred Stock, or our Series D Preferred Stock (3,450,000 shares if the underwriters' overallotment option is exercised in full), at $25.00 liquidation preference per share. TYPE OF OFFERING: Our Series D Preferred Stock is being offered pursuant to a registration statement (No. 333-69848) filed by us with the Securities and Exchange Commission, or the SEC. Our prospectus supplement filed or to be filed with the SEC, together with the accompanying prospectus, which we collectively refer to as the prospectus, also constitutes a part of the registration statement. GROSS OFFERING AMOUNT: $75,000,000. PROCEEDS, BEFORE EXPENSES, TO ISSUER: $72,637,500 ($83,533,125 if the underwriters' overallotment option is exercised in full). DIVIDENDS: Investors will be entitled to receive cumulative cash dividends on our Series D Preferred Stock from the date of original issuance in the amount of $2.0625 per share each year, which is equivalent to a rate of 8.25% of the $25.00 liquidation preference per share. However, during any period of time that both (i) our Series D Preferred Stock is not listed on the New York Stock Exchange, or NYSE, The NASDAQ Stock Market, or NASDAQ, or the American Stock Exchange, or AMEX, and (ii) we are not subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, but shares of our Series D Preferred Stock are outstanding, the cumulative cash dividends payable during such period on our Series D Preferred Stock will increase from $2.0625 per share each year to $2.3125 per share each year, which is equivalent to a rate of 9.25% of the $25.00 liquidation preference per share. Beginning on April 30, 2007, dividends on our Series D Preferred Stock will be payable quarterly in arrears on January 31, April 30, July 31 and December 31 of each year, or if not a business day, the immediately preceding business day. Dividends paid to investors on our Series D Preferred Stock will be cumulative from the date of original issuance, which we expect to be February 12, 2007. The first dividend, which will be payable on April 30, 2007, will be for less than a full quarter. TRADE DATE: February 7, 2007. SETTLEMENT DATE: Delivery of the shares of our Series D Preferred Stock will be made against payment therefor on or about February 12, 2007. The underwriters expect to deliver the shares of Series D Preferred Stock to purchasers on February 12, 2007, which is the third business day following the trade date. Pursuant to Rule 15c6-1 under the Exchange Act, trades in the secondary market are generally required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade our Series D Preferred Stock before the settlement of this offering will be required, by virtue of the fact that the offered shares will settle in three business days, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement. Purchasers of our Series D Preferred Stock who wish to trade the shares on the date of pricing or during the next three business days should consult their own advisors. OPTIONAL REDEMPTION: Except pursuant to a special optional redemption and in limited circumstances to preserve our status as a REIT, we may not redeem our Series D Preferred Stock prior to February 12, 2012. On or after February 12, 2012, we may, at our option, redeem shares of our Series D Preferred Stock, in whole or in part, at any time and from time to time, for cash at $25.00 per share, plus an amount equal to all accumulated and unpaid dividends, if any, to and including the redemption date. EXPECTED RATING: We have not requested a rating for our Series D Preferred Stock. USE OF PROCEEDS: We expect to receive net proceeds from the sale of the Series D Preferred Stock of approximately $72.4 million (or approximately $83.3 million if the underwriters exercise their over-allotment option in full) after deducting the underwriting discounts and commissions and estimated offering expenses. We intend to use the net proceeds to make investments in commercial real estate securities and commercial real estate loans and for general corporate purposes. Pending application of net proceeds, we expect to invest the net proceeds in interest-bearing accounts and short-term interest-bearing securities that are consistent with our qualification as a REIT. SOLE BOOKRUNNER: Bear, Stearns & Co. Inc. CO-MANAGERS: Stifel Nicolaus, Deutsche Bank Securities, Jefferies & Company, RBC Capital Markets, Cantor Fitzgerald & Co. FEES: We have agreed to pay the underwriters a gross underwriting fee of 3.15%, or $0.7875 per share of our Series D Preferred Stock sold in the offering. This underwriting fee is made up of the following: o up to 2.0%, or $0.50 per share, is the selling concession, which is the discount offered to brokers to help facilitate the offering; and o 1.15%, or $0.2875 per share, is the management and underwriting commission, which is the spread that accrues to the underwriters in proportion to the number of shares for which each underwriter was responsible. Of the 2.0% selling concession, up to 1.8%, or $0.45 per share, is the reallowance, which is the fee that the underwriting group pays to a securities firm that is not one of the underwriters, but which still sells shares in the offering. FURTHER ISSUANCES: We may from time to time, without the consent of the holders of our Series D Preferred Stock, issue additional shares of our Series D Preferred Stock having the same ranking and liquidation preference and other terms as the Series D Preferred Stock being offered hereby except for the issue price and issue date. CUSIP NO.: 037023405 The following replaces the text under "Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends" on page S-8 of the preliminary prospectus supplement, dated February 5, 2007, related to the Series D Preferred Stock: RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS The historical ratio of earnings to combined fixed charges and preferred stock dividends for the periods indicated is as follows: NINE MONTHS YEAR ENDED DECEMBER 31, ENDED -------------------------------------- SEPTEMBER 30, 2006 2005 2004 2003 2002 2001 ------------------ ---- ---- ---- ---- ---- Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends .................. 1.20 1.34 1.16 -- 1.61 1.68 For the purpose of calculating the above ratios, earnings represent: o income from continuing operations before adjustment for income or loss from equity investees; plus o fixed charges; plus o amortization of capitalized expenses related to indebtedness; plus o distributed income of equity investees; minus o preferred stock dividend requirements of consolidated subsidiaries. Combined fixed charges and preferred stock dividends represent: o interest expensed; plus o amortized premiums, discounts and capitalized expenses related to indebtedness; plus o preferred stock dividend requirements of consolidated subsidiaries. The ratios are based solely on historical financial information and no pro forma adjustments have been made thereto. For the year ended December 31, 2003, earnings were insufficient to cover combined fixed charges and preferred stock dividends by $20.2 million. THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT THE ISSUER AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE AT WWW.SEC.GOV. ALTERNATIVELY, THE ISSUER, ANY UNDERWRITER OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND YOU THE PROSPECTUS IF YOU REQUEST IT BY CALLING BEAR, STEARNS & CO. INC. TOLL FREE AT 1-800-999-2000.