BETHESDA, Md., May 5, 2014 /PRNewswire/ -- American Capital
Agency Corp. (NASDAQ: AGNC) ("AGNC" or the "Company") announced
today that it has priced a public offering of 7 million depositary
shares with a liquidation preference of $25.00 per share (the "Depositary Shares"),
for estimated gross proceeds of $175
million. Each Depositary Share represents a
1/1,000th interest in a share of the Company's 7.750%
Series B Cumulative Redeemable Preferred Stock. The offering
is subject to customary closing conditions and is expected to close
on or about May 8, 2014.
In connection with the offering, the Company has granted the
underwriters an option for 30 days to purchase up to an additional
1,050,000 Depositary Shares to cover overallotments, if
any.
AGNC expects to use the net proceeds from this offering, in
conjunction with borrowings under its master repurchase agreements,
to acquire additional agency securities as market conditions
warrant and for general corporate purposes.
Morgan Stanley & Co. LLC and UBS Securities LLC are joint
book-running managers for the offering. Citigroup Global
Markets Inc., Deutsche Bank Securities Inc. and RBC Capital
Markets, LLC are joint lead managers. Barclays Capital Inc.,
Credit Suisse Securities (USA)
LLC, J.P. Morgan Securities LLC, Maxim Group LLC, Sterne, Agee
& Leach, Inc. and Wunderlich Securities, Inc. are co-managers
for the offering.
The offering is being made pursuant to AGNC's existing effective
shelf registration statement, previously filed with the Securities
and Exchange Commission. The offering of these securities will be
made only by means of a prospectus and a related preliminary
prospectus supplement, when available. Copies of the
prospectus, when available, may be obtained from Morgan Stanley
& Co. LLC Attention: Prospectus Department, 180 Varick Street,
2nd Floor, New York, NY 10014,
telephone: (866) 718-1649, email: prospectus@morganstanley.com; or
UBS Securities LLC, 299 Park Avenue, New
York, NY 10171, Attn: Prospectus Department, telephone:
1-877-827-6444, ext. 561 3884.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy shares of preferred stock, nor
shall there be any sale of these securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
ABOUT AMERICAN CAPITAL AGENCY CORP.
American Capital
Agency Corp. is a real estate investment trust that invests in
agency 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 is externally managed and
advised by American Capital AGNC Management, LLC, an affiliate of
American Capital, Ltd. ("American Capital").
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (NASDAQ:
ACAS) is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its
asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate, energy & infrastructure and structured
products. American Capital manages $19
billion of assets, including assets on its balance sheet and
fee earning assets under management by affiliated managers, with
$93 billion of total assets under
management (including levered assets).
FORWARD-LOOKING STATEMENTS
This press release
contains statements that constitute "forward-looking statements,"
including with regard to the Company's securities offering and the
anticipated use of the net proceeds. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. No assurance can be given that the
securities offering discussed above will be completed on the terms
described, or at all, or that the net proceeds of the offering will
be used as indicated. Completion of the securities offering on the
terms described, and the application of net proceeds, are subject
to numerous conditions, many of which are beyond the control of the
Company, including, without limitation, changes in interest rates;
changes in the yield curve; changes in prepayment rates; the
availability and terms of financing; changes in the market value of
our assets; general economic conditions; market conditions;
conditions in the market for agency securities; legislative and
regulatory changes that could adversely affect the business of the
Company; and other factors, including those set forth in the Risk
Factors section of the Company's periodic reports and other
documents filed with the Securities and Exchange Commission
("SEC"). Copies are available on the SEC's website,
www.sec.gov. The Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release.
CONTACT:
Investors – (301) 968-9300
SOURCE American Capital Agency Corp.