AGNC Investment Prices Public Offering of Depositary Shares for $300 Million.

AGNC Investment has priced a public offering of 12 million depositary shares with a liquidation preference of $25.00 per share, for gross proceeds of $300 million. Each depositary share represents a 1/1,000th interest in a share. This offering will help AGNC Investment raise funds to support its business activities.

AGNC Investment Corp. (NASDAQ: AGNC), a mortgage REIT with a market capitalization of approximately $10.34 billion, has priced a public offering of 12 million depositary shares at $25.00 per share, raising $300 million in gross proceeds before deducting underwriting discounts and expenses [1]. The offering, which is expected to close around September 10, 2025, will be listed on the Nasdaq Global Select Market under the symbol "AGNCZ" [2].

Each depositary share represents a 1/1,000th interest in a share of the company’s 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock. The company has granted underwriters a 30-day option to purchase up to an additional 1.8 million shares to cover overallotments [1].

AGNC plans to use the net proceeds to finance the acquisition of Agency securities, non-Agency securities, other real estate-related assets, hedging instruments, and for general corporate purposes [1]. The company has a strong dividend yield of 14.75% and has maintained dividend payments for 18 consecutive years [1].

The offering is being conducted under AGNC’s existing shelf registration statement filed with the Securities and Exchange Commission. The company has a GOOD overall financial health score, although short-term obligations exceed liquid assets [1]. Morgan Stanley, Goldman Sachs, J.P. Morgan, RBC Capital Markets, UBS, Wells Fargo Securities, Citigroup, and Keefe, Bruyette & Woods are serving as joint book-running managers for the offering, with Barclays Capital acting as co-manager [1].

AGNC Investment Corp. is an investor in Agency residential mortgage-backed securities that are guaranteed against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. The company reported a comprehensive loss of $0.13 per common share for the second quarter of 2025, but maintained a strong liquidity position and declared dividends of $0.36 per common share [3].

This capital raise appears strategically timed to capitalize on potential opportunities in the mortgage securities market. By specifically earmarking the proceeds for Agency securities, non-Agency securities, and other real estate-related assets, AGNC is positioning itself to potentially expand its investment portfolio during a period when market dislocations might present attractive entry points [4].

For existing shareholders, this preferred offering represents a capital structure decision that avoids immediate common equity dilution while still enabling portfolio growth. The 8.75% fixed dividend rate creates a predictable cost structure for this portion of AGNC's capital stack, potentially allowing for enhanced returns on equity if deployed effectively in the targeted asset classes [4].

References:
[1] https://www.investing.com/news/company-news/agnc-investment-prices-300-million-depositary-shares-offering-93CH-4223021
[2] https://seekingalpha.com/news/4492063-agnc-investment-announces-pricing-of-public-offering-of-depositary-shares
[3] https://www.stocktitan.net/news/AGNC/agnc-investment-corp-announces-pricing-of-public-offering-of-qfwl2m9n65r4.html
[4] https://www.prnewswire.com/news-releases/agnc-investment-corp-announces-pricing-of-public-offering-of-depositary-shares-302545770.html