AGNC Investment Corp. Launches $300 Million Offering to Strengthen Capital and Investment Strategy
- AGNC Investment Corp. launches a $300 million public offering of 12 million depositary shares to strengthen its capital structure.
- The offering will finance acquisitions in Agency, non-Agency, and credit risk transfer securities, enhancing AGNC's liquidity.
- AGNC's proactive approach, supported by major financial institutions, reflects its commitment to sustainable growth and risk management.
AGNC Investment Corp. Launches $300 Million Public Offering of Depositary Shares
AGNC Investment Corp. announces a significant public offering of 12,000,000 depositary shares, each with a liquidation preference of $25.00, aiming to raise gross proceeds of $300 million before expenses. This offering, which represents a 1/1,000th interest in the company's 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock, is designed to bolster AGNC’s capital structure and facilitate further investments in real estate-related assets. Additionally, the offering includes a 30-day option for underwriters to purchase an additional 1,800,000 shares, allowing for potential overallotments and demonstrating market confidence in AGNC's growth strategy.
The depositary shares will be listed on The Nasdaq Global Select Market under the symbol "AGNCZ," with the offering expected to close around September 10, 2025, contingent upon customary closing conditions. The funds raised through this public offering are earmarked for the acquisition of both Agency and non-Agency securities, as well as credit risk transfer securities, which are essential for AGNC's operations in the real estate investment trust (REIT) sector. This strategic move not only enhances the company's liquidity but also positions AGNC to capitalize on emerging opportunities within the housing finance market while maintaining its focus on risk management and shareholder value.
AGNC’s decision to utilize its existing effective shelf registration statement on Form S-3 indicates a proactive approach to raise capital efficiently. The involvement of prominent financial institutions such as Morgan Stanley, Goldman Sachs, and J.P. Morgan as joint book-running managers underscores the credibility and attractiveness of this offering. AGNC has already filed a preliminary prospectus supplement with the SEC, with plans for a final prospectus to follow. Interested investors and stakeholders can access the prospectus supplements through the managing firms, ensuring transparency and compliance with regulatory standards.
In addition to the public offering, AGNC continues to emphasize its commitment to diversifying its investment portfolio. The company strategically invests in a mix of securities to mitigate risks associated with interest rate fluctuations and market volatility. By focusing on both Agency and non-Agency securities, AGNC aims to enhance its income-generating capabilities while navigating the complexities of the current economic landscape.
As AGNC moves forward with this public offering, it reinforces its position as a significant player in the mortgage REIT industry, poised to leverage new capital for sustainable growth and investment opportunities. The company’s approach reflects a broader trend in the sector, where firms are increasingly seeking to optimize their capital structures in response to changing market conditions and regulatory environments.
