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American Capital Mortgage to price cumulative redeemable preferreds; price talk 8%-8.125%
By Stephanie N. Rotondo
Phoenix, May 15 - American Capital Mortgage Investment Corp. launched an offering of at least $75 million series A cumulative redeemable preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Thursday.
Price talk is 8% to 8.125%, according to a trader.
Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners. Joint lead managers are Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
Senior co-managers include Barclays, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC. Co-managers are Maxim Group LLC, Oppenheimer & Co., Sterne Agee & Leach Inc. and Wunderlich Securities Inc.
Dividends will be payable on the 15th day of January, April, July and October, beginning July 15.
The company can redeem the preferreds beginning in May 2019 at par plus accrued dividends. There is also a change-of-control feature that allows that company to redeem the securities earlier. The provision also gives holders an option to convert their preferred stock into common stock at the lesser of the liquidation preference plus accrued dividends divided by the stock price or a share cap.
The company has applied to list the preferreds on the Nasdaq Global Select Market under the ticker symbol "MTGEP."
Proceeds will be used on a leveraged basis to invest in targeted assets as market conditions warrant, which include agency mortgage investments, non-agency mortgage investments and other mortgage-related investments.
American Capital Mortgage is a Bethesda, Md.-based real estate investment trust.
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