AGNC Investment Announces $300 Million Public Offering to Strengthen Capital Structure and Growth
- AGNC Investment Corp. launches a public offering of 12 million depositary shares to raise approximately $300 million for acquisitions.
- The offering will enhance AGNC's capital base for investments in Agency, non-Agency securities, and real estate-related assets.
- AGNC's strategy focuses on diversifying its portfolio to adapt to market demands and support long-term growth objectives.
AGNC Investment Launches Public Offering to Enhance Capital Structure
AGNC Investment Corp. announces a significant public offering of 12 million depositary shares, each with a liquidation preference of $25.00. This initiative aims to generate gross proceeds of approximately $300 million before expenses, which AGNC intends to utilize for strategic acquisitions within the real estate sector. Each depositary share represents a 1/1,000th interest in the company's newly issued 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock. The offering includes a 30-day option for underwriters to purchase an additional 1.8 million shares to cover any overallotments, enhancing the potential total capital raised.
The planned listing of these depositary shares on The Nasdaq Global Select Market under the symbol "AGNCZ" marks a pivotal step for AGNC, as it seeks to bolster its capital base to finance the acquisition of both Agency and non-Agency securities, credit risk transfer securities, and other real estate-related investments. This move is crucial for AGNC to maintain its competitive edge in a rapidly evolving market, where access to capital can influence investment strategies and operational flexibility. The offering is set to close around September 10, 2025, subject to customary closing conditions, indicating AGNC's commitment to executing its capital-raising plans efficiently.
The joint book-running managers for this offering consist of prominent financial institutions including Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, reflecting strong confidence in AGNC's market position. Barclays Capital Inc. also plays a role as co-manager in this transaction. AGNC conducts this offering under its existing effective shelf registration statement on Form S-3, previously filed with the SEC, ensuring compliance and transparency in its capital-raising efforts. A preliminary prospectus supplement has been filed, with a final prospectus to follow, providing interested investors with essential information regarding the offering.
In addition to its plans for the public offering, AGNC's strategy encompasses a broader focus on diversifying its investment portfolio. The company aims to leverage the proceeds from this offering to enhance its positioning in various real estate-related assets, thereby addressing evolving market demands. This approach is essential for AGNC to navigate the complexities of the mortgage real estate investment trust (REIT) landscape, where market volatility can impact performance.
As AGNC Investment moves forward with this public offering, the implications for its operational strategy and market positioning are significant. The successful execution of this capital initiative not only supports AGNC's immediate financing needs but also reinforces its long-term growth objectives in the competitive real estate investment arena.