American Capital to Offer Shares - Analyst Blog
12 Mars 2012 - 6:38PM
Zacks
American Capital Agency Corp. (AGNC) recently
announced that it has issued a public offering of 62 million shares
for estimated proceeds of approximately $1.8 billion. To cover any
over-allotments, American Capital also plans to offer a 30-day
option to the underwriters of the offering for purchasing an
additional 9,150,000 shares.
The net proceeds from this offering will be utilized for the
acquisition of additional agency securities keeping in mind the
prevailing market conditions and for other general corporate
purposes.
This public offering will enable the company to attain financial
flexibility and position it favorably to pursue investment
opportunities and acquisitions, which go a long way in enhancing
top-line growth. As of December 31, 2011, American Capital’s cash
position stood at $1.4 billion.
American Capital Agency Corp. is a real estate investment trust
(REIT) 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.
American Capital Agency is one of only a few companies to have
increased its dividend during the economic downturn. The company
declared a fourth quarter dividend of $1.40 per share, which
equates to a total of $1.3 billion in dividends or $18.86 per share
since its initial public offering in May 2008.
American Capital currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Neutral recommendation on the stock. One of its
competitors, MFA Financial, Inc (MFA) holds a
Zacks #4 Rank, which translates into a short-term Sell rating.
AMER CAP AGENCY (AGNC): Free Stock Analysis Report
MFA FINANCIAL (MFA): Free Stock Analysis Report
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