Arlington Asset Investment Prices Fixed-to-Floating Rate Preferred-Updated

mREIT Arlington Asset Investment (NYSE:AI) has priced their new issue of fixed-to-floating rate preferred stock with an initial coupon of 8.25%.

The issue will have the coupon fixed at 8.25% until March 30, 2024 at which point it will change to floating rate with a coupon of 3 month Libor plus a spread of 5.664%.

The issue will have have an optional redemption period which starts on 3/30/2024 after which the company can redeem the shares for liquidation value of $25 plus accrued dividends.

The terms of the new issue are the normal terms for a REIT preferred meaning the dividends will be cumulative and the dividends will be non qualified.  The issue is not rated.  They will sell 1.2 million shares with another 180,000 shares available for over allotment.

AI has 1 other very small (135,000) perpetual preferred outstanding (AI-B) with a coupon of 7% which can be seen here.

Additionally the company has 2 baby bonds outstanding.  The AIW issue has a coupon of 6.625% while the AIC issue has a coupon of 6.75%.

The new issue will trade on the OTC Grey market under the temporary ticker of AISVP immediately.  When the new issue moves to trading on the NYSE the ticker will be AI-C.

We do note that the company has been a C Corp since 2009 (having previously been a REIT) and they have recently voted to go back to REIT status.

The company press release announcing this pricing can be found here–the SEC documents have not been filed as of this moment (4 am)–we will post the SEC document in a few hours when it is formally filed.

UPDATE–the final pricing document is here.

The preliminary prospectus for this new issue can be read here.

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