AGNC Investment Pursues $300 Million Capital Raise Amid Market Strain

In a bold move reflecting the challenging environment for mortgage REITs, AGNC Investment Corp. has announced a substantial $300 million capital raise. The company is moving forward with a significant offering of preferred shares rather than retreating from current market pressures, raising questions about whether this constitutes strategic positioning or a necessary response to financial headwinds.

The financing will be structured through the issuance of 12 million depository shares, each priced at $25 and representing an interest in a preferred stock series. The offering includes an additional option for underwriters to purchase 1.8 million more shares if demand exceeds expectations. These shares, which carry a fixed dividend rate of 8.75%, are scheduled to begin trading on the Nasdaq this week.

Management has outlined a Read more...