Preferred Stock Investing
Preferred Stock Channel
Market News Video Self Directed Investor The Warren Buffetts Next Door Stock message boards
American Capital Agency Corp | 8.000% Series A Cumulative Redeemable Preferred Stock (AGNCP)

Prospectus exerpt:  American Capital Agency Corp. is offering to the public 6,000,000 shares of 8.000% Series A Cumulative Redeemable Preferred Stock. This is an original issuance of the Series A Preferred Stock. The company will pay quarterly cumulative dividends on the Series A Preferred Stock, in arrears, on the 15th day of each January, April, July and October (provided that if any dividend payment date is not a business day, then the dividend which would otherwise have been payable on that dividend payment date may be paid on the next succeeding business day) from, and including, the date of original issuance at 8.000% of the $25.00 per share liquidation preference per annum (equivalent to $2.000 per annum per share).

The Series A Preferred Stock will not be redeemable before April 5, 2017, except under circumstances intended to preserve the qualification as a real estate investment trust, or REIT, for federal income tax purposes and except as described below upon the occurrence of a Change of Control (as defined herein).

On or after April 5, 2017, the company may, at their option, redeem any or all of the shares of the Series A Preferred Stock at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. In addition, upon the occurrence of a Change of Control, the company may, at their option, redeem any or all of the shares of Series A Preferred Stock within 120 days after the first date on which such Change of Control occurred at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date.

The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the company or converted into the company's common stock in connection with a Change of Control by the holders of Series A Preferred Stock.

Upon the occurrence of a Change of Control, provided that the Common Stock Authorization (as defined herein) has occurred at or prior to such Change of Control, each holder of Series A Preferred Stock will have the right (subject to the company's election to redeem the Series A Preferred Stock in whole or in part, as described above, prior to the Change of Control Conversion Date (as defined herein)) to convert some or all of the Series A Preferred Stock held by such holder on the Change of Control Conversion Date into a number of shares of the company's common stock per share of Series A Preferred Stock equal to the lesser of:

the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference per share of the Series A Preferred Stock plus the amount of any accumulated and unpaid dividends thereon to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a dividend record date (as defined herein) and prior to the corresponding dividend payment date (as defined herein) for the Series A Preferred Stock, in which case no additional amount for such accrued and unpaid dividends will be included in this sum) by (ii) the Common Stock Price (as defined herein); and

1.7100 (the “Share Cap”), subject to certain adjustments as explained herein; in each case, on the terms and subject to the conditions described in the prospectus supplement, including provisions for the receipt, under specified circumstances, of alternative consideration as described in this prospectus supplement.

If, following a Change of Control, the Common Stock Authorization has not occurred and the company has not exercised their option to redeem the Series A Preferred Stock as described above, they will increase the cumulative dividend rate by 300 basis points per annum. Holders of shares of the Series A Preferred Stock will be entitled to receive cumulative cash dividends from, and including, the first date on which the Change of Control has occurred at the increased rate for so long as they have not exercised their option to redeem the Series A Preferred Stock.

Full Prospectus PDF », AGNC Page »

Series:A
Redeemable?:Yes
Call Date:4/5/2017
Perpetual?:Yes
Cumulative?:Yes
Shares Offered:6000000
Overallotment:900000
Liquidation Preference:$25
Recent Market Price:$26.19
Premium to Liquidation Preference:
(More Preferreds Trading at a Premium »)
$1.19 (4.76%)
Annualized Dividend:2.00
Recent Ex-Date:9/29/2014
Current Yield:7.64%
Original Coupon:8.000%
Pay Period:Quarterly
Pay Dates:15-Jan, 15-Apr, 15-Jul, 15-Oct
American Capital Agency is a real estate investment trust. Co. primarily invests in agency mortgage-backed securities. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by a U.S. Government agency. Co. may also invest in agency debenture securities issued by Freddie Mac, Fannie Mae or the Federal Home Loan Bank and in other assets. Co. is externally managed by American Capital AGNC Management, LLC.

Preferred: AGNCP


Open the AGNC Information Page »
Name:  American Capital Agency Corp
Website:  www.AGNC.com
Sector:  REITs
Number of ETFs Holding AGNC:  43 (see which ones)
Total Market Value Held by ETFs:  $714,673,523
Total Market Capitalization:  $8,105,000,000
% of Market Cap. Held by ETFs:  8.82%

Quotes delayed 20 minutes

American Capital Agency Corp | 8.000% Series A Cumulative Redeemable Preferred Stock (AGNCP) Information Page | Preferred Stock Channel | www.PreferredStockChannel.com | Copyright © 2011 - 2014, All Rights Reserved

Nothing in Preferred Stock Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Preferred Stock Channel; Meet Our Editorial Staff.