AG Mortgage Investment Trust Prices Preferred

mREIT AG Mortgage Investment Trust (NYSE:MITT) has priced their new fixed-to-floating rate preferred with an initial coupon of 8%.

There was some thought that they might be able to call one of the old issues, which bear coupons of 8% and 8.25%, but it would appear to be unlikely with this issuance at 8%.

The issue will float starting in 2024 at 3 month Libor plus a spread of 6.476%.

NOTE–the OTC Grey Market ticker has not been posted as of 7 a.m. CDT.

The pricing term sheet can be seen here.

Fred was on top of this pricing last night with a posting under the mREIT AG Mortgage Investment Trust to Sell Fixed-to-floating Preferred.

15 thoughts on “AG Mortgage Investment Trust Prices Preferred”

  1. Closed at 25.10, the high for the day. Volume 1.78 million, nearly half of the the 4m total. None of the major brokers had it yet. Who is buying it? and where?

    1. I was able to get 500 shares on TD Ameritrade at 3:30pm @ 24.98. Was surprised they had it already.

  2. If the market thought MITT to be healthy their stock price would roughly track REM – take a look at 1yr performance.

    1. NLY common is worse. Its NLY-D (its preferred with the highest coupon rate of 7.50% and past its call date) is trading around $25.3999 today. MITT-B, also past its call date and with a coupon of 8.0%, is $25.31, probably in anticipation of a new preferred with a brand new call date. MREITS are more risky.

      1. NLY preferreds are safer than MITT preferreds. The common is at risk of dividend cuts but not much risk of bankruptcy which is what the preferreds care about. I sold off NLY-D awhile ago, didn’t expect it to last this long.

  3. That little voice is always talking me out of trades. This time it’s what if – rates hit the U.S. , or at least drop further? M-reits will get crushed… See what I mean, my anti-risk voice always has an answer, even when I don’t want it too. Arghhh

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