BETHESDA, Md., May 2, 2018 /PRNewswire/ -- AGNC Investment
Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that
its subsidiary MTGE Management, LLC has entered into an amendment
to its management agreement with MTGE Investment Corp. (Nasdaq:
MTGE) ("MTGE") in connection with the proposed acquisition of MTGE
by Annaly Capital Management, Inc. (NYSE: NLY). The
transaction is subject to customary closing conditions and is
expected to close in the third quarter of 2018.
Pursuant to the amendment, MTGE Management, LLC will continue to
manage MTGE through the closing of the merger and for a short
transitional period following the merger. In addition to
regular monthly management fees payable for ongoing service, MTGE
Management, LLC will be paid a termination fee of $41.7 million. Importantly, AGNC will
retain all of its investment capabilities; personnel, including the
employees responsible for investing on MTGE's behalf; and
infrastructure.
"As AGNC's relationship with MTGE nears its end with MTGE's
pending acquisition, we are extremely proud of what we, through our
asset management subsidiary, have accomplished at MTGE and for its
shareholders," said Gary Kain,
AGNC's Chief Executive Officer and Chief Investment Officer.
"From MTGE's initial public offering in 2011 through May 1, 2018, our portfolio management team has
guided MTGE to an aggregate total stock return of 107%, or over 11%
annualized. MTGE's performance in 2017 was particularly
favorable, as it posted a total stock return of over 30% and an 18%
economic return."
For further information or questions, please contact Investor
Relations at (301) 968-9300 or IR@AGNC.com.
ABOUT AGNC INVESTMENT CORP.
AGNC Investment Corp. is
an internally-managed real estate investment trust that invests
primarily in residential mortgage-backed securities for which the
principal and interest payments are guaranteed by a U.S.
Government-sponsored enterprise or a U.S. Government agency.
For further information, please refer to www.AGNC.com.
FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking statements, including statements regarding the
expected timing of completion of the proposed transaction, the
expected benefits of the proposed transaction, and management's
plans, projections and objectives for future operations.
Forward-looking statements are based on estimates, projections,
beliefs and assumptions of management of the Company at the time of
such statements and are not guarantees of future performance or
results. Forward-looking statements involve risks and
uncertainties in predicting future results and conditions.
Actual results could differ materially from those projected in
these forward-looking statements due to a variety of important
factors, 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
the Company's assets, the occurrence of any event or change of
circumstances that could give rise to the termination of the
transaction agreement, the risk that the proposed transaction will
not be consummated in a timely manner or at all, the receipt of
regulatory approval or other closing conditions for the proposed
transaction, risks related to the disruption of management time
from ongoing business operations due to the proposed transaction,
the failure to realize the expected benefits from the proposed
transaction, 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. Certain important factors that could cause actual
results to differ materially from those contained in the
forward-looking statements, are included in the Company's periodic
reports filed with the Securities and Exchange Commission
("SEC"). Copies are available on the SEC's website,
www.sec.gov. The Company disclaims any obligation to update
or revise any forward-looking statements based on the occurrence of
future events, the receipt or new information, or otherwise.
CONTACT:
Investor Relations - (301) 968-9300
Media - (301) 968-9303
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SOURCE AGNC Investment Corp.
