By Stephanie N. Rotondo
Phoenix, May 5 - American Capital Agency Corp. priced $175 million of 7.75% series B cumulative redeemable preferred stock a par of $25.00 on Monday, the company said in an FWP filed with the Securities and Exchange Commission.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
Price talk was for a yield of 7.75% to 7.875%.
Joint bookrunners are Morgan Stanley & Co. LLC and UBS Securities LLC. Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets acted as joint lead managers.
Dividends will be payable on the 15th day of January, April, July and October, beginning July 15. The preferreds become redeemable on May 8, 2019 or upon a change of control at par plus accrued dividends.
Proceeds will be used along with borrowings available under master repurchase agreements to buy agency securities and for general corporate purposes.
American Capital Agency is a Bethesda, Md.-based real estate investment trust focused on investing in agency mortgage-backed securities.
| Issuer: | American Capital Agency Corp.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $175 million, or 7 million shares
|
| Greenshoe: | $26.25 million, or 1.05 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Lead managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Maxim Group LLC, Sterne Agee & Leach Inc., Wunderlich Securities Inc.
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
|
| Yield: | 7.75%
|
| Talk: | 7.75% to 7.875%
|
| Call options: | On or after May 8, 2019 or in the event of a change of control at par plus accrued dividends
|
| Pricing date: | May 5
|
| Settlement date: | May 8
|
| Expected listing: | Nasdaq: AGNCB
|
| Cusip: | 02503X303
|
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