mREIT AG Mortgage (MITT) has priced their most recent issue of baby bonds.
MITT sold an issue of 9.50% baby bonds (MITN) in January and this is now trading at $25.15 (current yield of 9.43%).
The pricing term sheet can be read here.
AG Mortgage Prices Baby Bonds
Borrowing at a 9.5% rate and the lender’s name is not “Jimmy the Squirrel “…
I am somewhat confused how Egan Jones can rate this $200M capitalization company BBB- ( investment grade) bond with a balance sheet 90% debt to assets, institutional/ inside ownership @approx. only 30% and interest coverage on its debt at a just little above 1.1 ratio? Any takers
I don’t think many people take Egan’s ratings seriously. I certainly don’t. Kinda the clown car of ratings agencies.
Maybe I am wrong, but it certainly seems that way.
I’m not here to defend Egan Jones. We all know what they are.. Many insurance companies require a rating to buy.
But happy to discuss MITT if anyone is genuinely interested.
Almost all mREITs have low interest coverage ratio’s by definition so either you are comfortable with the levered style or not. NLY is one of the most respected mREITs. It has a coverage ratio of 1x.