AGNC’s 7% fixed-to-floating cumulative preferreds list on Nasdaq

By Stephanie N. Rotondo

Seattle, Aug. 28 – AGNC Investment Corp.’s $300 million of 7% series C fixed-to-floating rate cumulative redeemable preferred stock listed on the Nasdaq Global Select Market on Monday.

The ticker symbol is “AGNCN.”

The deal came Aug. 15, upsized from $150 million. Price talk was 7% to 7.125%.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC and Keefe Bruyette & Woods Inc. were the joint bookrunners.

The preferreds were issued as depositary shares representing a 1/1,000th interest.

There is a $45 million over-allotment option.

Dividends are payable on the 15th day of January, April, July and October, beginning Oct. 15. The rate will be fixed until Oct. 15, 2022, at which point it will float at Libor plus 511.1 basis points.

The preferreds become redeemable on Oct. 15, 2022 at par plus accrued dividends. The company may also opt to call the issue upon a change of control.

The Bethesda, Md.-based real estate investment trust will use proceeds redeem all of its outstanding 8% series A cumulative redeemable preferreds (Nasdaq: AGNCP). Any remaining funds will be used to acquire agency securities, non-agency securities, other mortgage-related assets and hedging instruments and for other general corporate purposes such as repayment of outstanding debt, working capital and for liquidity needs.

Pending this utilization, the company may temporarily invest the proceeds in readily marketable, short-term, interest-bearing investments.

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