UPDATE–the floating rate portion will be 3 month Libor plus a spread of 4.332% beginning 4/15/2024.
mREIT AGNC Investment (NASDAQ:AGNC) has priced their new fixed-to-floating rate preferred with the lowest fixed coupon portion (from a mREIT) that we have seen in a year since Annaly (NYSE:NLY) sold a f-t-f issue with a 6.50% fixed portion in January, 2018.
The initial fixed rate coupon is priced at 6.875% which will remain fixed until 4/15/2024 at which point it will flip to a floating rate. The SEC document has not been filed as of tonight and the spread for the floating rate period was not announced in the company press release (what the hell–a press release without all the details)
The issues will be junk rated (not rated), cumulative and NOT qualified for preferential tax treatment.
The company will be selling 9 million shares and there will be 1.350 million shares for over allotment.
Shares will trade tomorrow on the OTC Grey market under the temporary ticker symbol of AGNCO. The permanent ticker symbol will be AGNCM.
We will post final SEC documents with further details in the morning (assuming they are filed).