By James McCandless
San Antonio, Feb. 28 – AGNC Investment Corp. priced $225 million of $25-par series D fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 6.875%, according to an FWP filing with the Securities and Exchange Commission.
There is a $33.75 million greenshoe.
The deal was announced Wednesday morning.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc. are the bookrunners.
The preferreds are redeemable on or after April 15, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event.
The dividend is fixed until April 15, 2024, then converts to a floating rate of Libor plus 433.2 basis points.
AGNC plans to use the proceeds to finance the acquisition of agency securities, non-agency securities (including credit risk transfer securities), other real estate-related assets and hedging instruments, other investments in, or related to the housing, mortgage or real estate markets, and for other general corporate purposes.
The company plans to list the preferreds on the Nasdaq Global Select Market under the symbol “AGNCM.”
AGNC is a Bethesda, Md.-based real estate investment trust.
| Issuer: | AGNC Investment Corp.
|
| Description: | Series D fixed-to-floating rate cumulative redeemable preferred stock
|
| Amount: | $225 million, or 9 million shares
|
| Greenshoe: | $33.75 million, or 1.35 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc.
|
| Co-manager: | Citigroup Global Markets Inc.
|
| Dividend: | 6.875% until April 15, 2024, then converts to 433.2 bps over Libor
|
| Price: | Par of $25.00
|
| Call: | On or after April 15, 2024; prior to that, within 120 days after a change-of-control event
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 6
|
| Distribution: | SEC registered
|
| Listing: | Nasdaq: AGNCM
|
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