mREIT AGNC Investment Announces Fixed-to-Floating

mREIT giant AGNC Investment (NASDAQ:AGNC) has announced they will be offering a new fixed-to-floating rate preferred.

The permanent ticker when available for trading on the NASDAQ (the permanent trading exchange) will be AGNCL. The OTC Grey market ticker has not yet been announced.

Terms of the new issue look fairly typical for a REIT–cumulative, redeemable in about 5 years, with non-qualified dividends etc.

The company currently has 3 other preferred issues outstanding, 2 of which are fixed-to-floating rate issues. The outstanding issues can be seen here.

The preliminary prospectus can be read here.

Fred caught this one right away on the Reader Alerts Page.

19 thoughts on “mREIT AGNC Investment Announces Fixed-to-Floating”

    1. Are you suggesting they are intentionally trying to mislead their preferred shareholders?

          1. Yes I have – ‘other general corporate purposes’ was mentioned. Perhaps you missed that part?

            1. You can’t be serious lol. If their plan was to redeem AGNCB with the proceeds, why wouldn’t they state that?

              At this point, I’m not really sure what it’s going to take to get them to redeem AGNCB.

              1. I have to agree that their intention is probably not to redeem AGNCB with the proceeds. Last time they redeemed a preferred it was AGNCP which was redeemed using proceeds from the AGNCN new issue, and that was specifically stated in the prospectus use of proceeds. Anyway, I added to my AGNCB position today as the stripped price after Monday’s ex will only be about 25.15. and I am willing to risk that 15 cents against the possibility that they will leave it alone for a while longer.

              2. Yesterday Mr Market thought a redemption was in the cards. Volume was much greater than average and price dropped more than average. Considering that AGNCB goes ex-div next Monday, this action seemed unusual.

  1. That is odd, the press release says the permanent symbol will be AGNCO.
    They have previously used both AGNCO and AGNCL as temporary symbols, so neither one seems like a great pick. What is wrong with AGNCE?

    1. Those types of moves are very normal, as investors/brokers move to newest issue. As an investor you need to look and compare all their older pfd’s w new issue. Sometimes you’re better off just buying older on sell off.

      The new one has a ytc of 6.5% higher than the others

      1. Numbers looked off until I saw the high floating rate, now it makes sense. Still like M for the dividend capture, maybe in time to but O.

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