mREIt AGNC Investment Corp to Sell F-T-F Preferred

mREITs have been very active in the equity markets in the last 30 days and now we see a new preferred issue from AGNC Investment (NASDAQ:AGNC).

AGNC will sell a new fixed-to-floating rate issue with an optional redemption in 2024.

The terms will be typical–cumulative dividends, but not qualified for preferential tax treatment (REITs do not pay qualified dividends).

Of course the issue is not rated as very few mREIT issues are rated.

AGNC has 2 other preferred stock issues outstanding. AGNCB has a coupon of 7.75% and is trading around $25.50. While AGNCN is a fixed to floating rate issue with a 7% current coupon–the issue is trading around $25.65.

Preliminary information on the new issue can be found here.

Thanks to Nomad and others for keeping us on our toes.

14 thoughts on “mREIt AGNC Investment Corp to Sell F-T-F Preferred”

  1. All the new income issues tell me it’s a good time not to be a buyer. The institutional buyers have no choice but to buy at the IPO but you do. Make use of the advantage.

    Nothing against AGNC; I own the “N”. I sometimes exchange an old issue for a new issue if terms are right, but I won’t be increasing my net exposure.

    In any event, after December’s buying frenzy (and estimated tax payments), nothing much to invest.

    Clipping coupons and waiting patiently for the next panic …….

    1. Lumpy posted again:

      temp grey ticker = AGNCO

      Hi Tim,

      I am wondering why I have to enter my name and email address every time I post. I don’t think it used to be that way but for some reason, III is not seeing me as a repeat poster. Or…does everyone have to type in their name and email address with every post?

  2. Prospect has a new 6.375% convertible to peddle too. All this recent stuff reminds me of Whimpy “I’ll gladly pay you Tuesday for a hamburger today” and it’s raining hamburgers right now.

    1. P–I saw that come through–but semi ignored it as I don’t really cover convertibles. Will look at this and see if I should include it.

      Back when it was really busy we had 1-2 new issues each day–was about impossible to keep up.

      1. Sorry Tim. I never really noticed you ignored the convertibles. Any F/F, convert, or other gimmick right now to get the money. Whimpy is getting fat and we’ll have to wait and see who gets paid on Tuesday.

        1. When I grew up in England in the 60’s we had a “whimpy burger” restaurant, although they sold beef burgers not hamburgers!

          1. Libero

            Hamburgers are beef.
            You’ve reminded me of an old commercial for Wendy’s hamburgers where a customer asks ‘Where’s the Beef?”

          2. I loved eating at Wimpy. Still visit them in South Africa. That and the potjies.

      2. Tim, where did you see that the AGNC”M” will be a convertible? It is perpetual, just like the other 2 cumulative preferreds they have outstanding. Wishing you profitable investing, Nomad

        1. I don’t think Tim was saying that AGNCM would be a convertible. I think he was responding to a reader comment in this thread about a PSEC security that is a convertible. As you point out, AGNCM will be a perpetual. It will have a fixed to floating feature like AGNCN. But as of this moment, I don’t think they have disclosed the spread over 3mL after the optional redemption date. We should know tomorrow. I’m curious to learn whether it will be tighter than the AGNCN spread of 5.11%. I also wonder whether they will use proceeds to redeem AGNCB, which is callable in May

    2. Prospect is not a mandatory convert. I personally won’t do mandatory converts. They are just common stock with a below market term loan. Good for them; bad for me. Usually.

      The new PSEC issue is, effectively, a debt issue with a deep out of the money call option. The call isn’t worth a lot. That they had to throw it is says (to me) they are coming from a position of weakness.

      I own PBB and may swap issues, depending on where the new issue trades. The new issue will trade over the bond desk it seems.

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