American Capital Agency Corp. Announces Launch of Initial Public Offering
28 April 2008 - 1:21PM
PR Newswire (US)
BETHESDA, Md., April 28 /PRNewswire-FirstCall/ -- American Capital
Agency Corp. (the "Company") announced today that it plans to
conduct an initial public offering of its common stock. American
Capital Agency Corp. expects to offer 12,500,000 shares to the
public at the proposed initial public offering price of $20.00 per
share, for gross proceeds of $250 million. The Company will grant
the underwriters a 30-day option to purchase up to 1,875,000 shares
of common stock at the initial public offering price, less
underwriting discounts, to cover over-allotments, if any. American
Capital Agency Corp. has received approval, subject to official
notice of issuance, to list its common stock on The NASDAQ Global
Market under the symbol "AGNC." The completion of the proposed
offering depends upon several factors, including market and other
conditions. The Company plans to use all of the net proceeds of the
initial public offering to invest in single-family residential
mortgage pass-through securities and collateralized mortgage
obligations for which the principal and interest payments are
guaranteed by a U.S. Government agency or a U.S.
Government-sponsored entity, or agency securities. Citi and Merrill
Lynch & Co. will act as joint book-runners of the proposed
offering. Credit Suisse, Deutsche Bank Securities and Morgan
Stanley will act as joint lead managers, with Banc of America
Securities LLC, HSBC, JMP Securities and RBC Capital Markets acting
as co-managers for the offering. A registration statement relating
to these securities has been filed with the Securities and Exchange
Commission but has not yet been declared effective. These
securities may not be sold nor may offers to buy these securities
be accepted prior to the time the registration statement becomes
effective. This press release is neither an offer to sell nor a
solicitation of an offer to buy shares of common stock in any state
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state. The offering of these securities will be made only by
means of a prospectus. When available, a copy of the preliminary
prospectus may be obtained from Citi, Brooklyn Army Terminal, 140
58th Street, 8th Floor, Brooklyn, New York 11220, telephone number:
800-831-9146 or Merrill Lynch & Co., Attention: Prospectus
Department, 4 World Financial Center, New York, NY 10080, telephone
number: 212-449-1000. ABOUT AMERICAN CAPITAL AGENCY CORP. American
Capital Agency Corp. is a newly-organized Delaware corporation
formed to invest exclusively in single-family residential mortgage
pass-through securities and collateralized mortgage obligations for
which the principal and interest payments are guaranteed by a U.S.
Government agency or a U.S. Government-sponsored entity. The
Company will be externally managed and advised by American Capital
Agency Management, LLC, a subsidiary of a wholly-owned portfolio
company of American Capital Strategies, Ltd. (NASDAQ:ACAS). The
Company will elect to be taxed, and intends to qualify, as a real
estate investment trust for federal income tax purposes. This press
release contains certain forward-looking statements about the
Company's proposed initial public offering of its common stock.
Forward-looking statements include statements regarding the market
for the common stock and anticipated future results and can be
identified by the fact that they do not relate strictly to
historical or current facts. They often include words such as
"believe," "expect," "anticipate," "estimate" and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could" or "may." Certain factors that could cause actual results
to differ materially from expected results include delays in
consummation of the offering and concurrent transactions, general
economic conditions, market conditions, conditions in the market
for agency securities, and legislative and regulatory changes that
could adversely affect the business of the Company. DATASOURCE:
American Capital Agency Corp. CONTACT: Tom McHale, Senior Vice
President, Finance, or Justin Cressall, Vice President, Equity
Capital Markets, both of American Capital Strategies, Ltd.,
+1-301-951-6122 Web site: http://www.americancapital.com/
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