By Stephanie N. Rotondo
Phoenix, Sept. 5 – Invesco Mortgage Capital Inc. priced $150 million of 7.75% series B fixed-to-floating rate cumulative redeemable preferred stock, according to an FWP filed with the Securities and Exchange Commission on Friday.
Morgan Stanley & Co. LLC, BofA Merrill Lynch and UBS Securities LLC are the joint bookrunners.
Dividends will be payable on the 27th day of March, June, September and December, beginning Dec. 27. The rate will be fixed through Dec. 27, 2024, at which time it will begin to float at Libor plus 518 basis points.
The preferreds cannot be redeemed before Dec. 27, 2024 unless to maintain the company’s real estate investment trust status, for federal income tax purposes or a change of control. The redemption price is par plus accrued dividends.
The Atlanta-based firm plans to use the proceeds to purchase agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities, mortgage loans and other mortgage-related financing agreements, in accordance with its investment guidelines.
| Issuer: | Invesco Mortgage Capital Inc.
|
| Securities: | Series B fixed-to-floating rate cumulative redeemable preferred stock
|
| Amount: | $150 million, or 6 million shares
|
| Greenshoe: | $22.5 million, or 900,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
|
| Yield: | 7.75%
|
| Talk: | 7.75%
|
| Call options: | On or after Dec. 27, 2024 or to maintain REIT status, for tax purposes or upon a change of control at par plus accrued dividends
|
| Pricing date: | Sept. 4
|
| Settlement date: | Sept. 11
|
| Expected listing: | NYSE: IVRPB
|
| Cusip: | 46131B407
|
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