Arlington offers fixed-to-floating cumulative redeemable preferreds

By James McCandless

San Antonio, March 5 – Arlington Asset Investment Corp. plans to price an offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC and UBS Securities LLC are the bookrunners.

The preferreds are redeemable on or after March 30, 2024. Prior to that, they are redeemable to preserve the company’s qualification as a real estate investment trust or within 120 days after a change-of-control event.

The dividend is fixed until March 30, 2024, then converts to a floating rate of Libor plus a spread.

Arlington plans to use the proceeds to acquire its target assets, including agency MBS.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “AIPrC.”

Arlington is a Washington-based real estate investment trust specializing in mortgage-related assets.

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