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
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
SOURCE American Capital Agency Corp.
Tom McHale, Senior Vice President, Finance
or Justin Cressall,
Vice President, Equity Capital Markets, both of American Capital Strategies,
Web site: http://www.americancapital.com