NEW YORK - AG Mortgage (NYSE:MITT) Investment Trust, Inc. (NYSE:MITT), a residential mortgage real estate investment trust (REIT), has announced the pricing of a $65 million public offering of 9.500% senior notes due 2029. The offering is set to close on May 15, 2024, with the customary closing conditions.
The company aims to list the senior notes on the New York Stock Exchange under the ticker symbol "MITP" and anticipates trading to commence within 30 days post-issuance if the application is approved. Egan-Jones Ratings Company, an independent rating agency, has assigned an investment grade rating of BBB- to the notes.
AG Mortgage plans to allocate the net proceeds from this offering to general corporate functions. These may include acquiring Residential Investments and Agency RMBS, in line with the company's investment guidelines, and ensuring it maintains its REIT status and exemption from the Investment Company Act of 1940. Part of the proceeds might go towards working capital needs, which could cover repaying existing debts, such as a portion of the 6.75% Convertible Senior Notes due 2024, which are redeemable at the company's option after June 15, 2024.
The senior notes, which are unsecured obligations of AG Mortgage, will pay interest quarterly starting August 15, 2024, with a maturity date of May 15, 2029. The company may redeem the notes, either partially or in full, at its discretion on or after May 15, 2026.
Joint book-running managers for the offering include Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co. The offering is made under the company's effective shelf registration statement on file with the Securities and Exchange Commission.
This announcement follows the company's strategy to manage a diversified, risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market. AG Mortgage Investment Trust, Inc. is managed by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., part of the TPG platform.
InvestingPro Insights
AG Mortgage Investment Trust, Inc. (NYSE:MITT) has recently been a topic of interest among investors, particularly following its announcement of a public offering of senior notes. To provide additional context, InvestingPro has highlighted some key metrics and insights that could be valuable for investors considering the company's current financial situation and market performance.
One of the noteworthy InvestingPro Tips is the company's significant return over the last week, with a 19.72% increase in price total return, which may reflect positive investor sentiment towards the company's strategic moves. Additionally, the company's P/E Ratio stands at a low 3.59, suggesting that the stock might be trading at a low earnings multiple compared to its peers.
From the InvestingPro Data, it's evident that AG Mortgage Investment Trust has a market capitalization of $198.95 million USD, indicating its size within the residential mortgage REIT sector. The company also boasts a robust gross profit margin of 85.23% for the last twelve months as of Q1 2024, which could be a sign of efficient operations and strong pricing power. Furthermore, the dividend yield is particularly striking at 10.59%, which is significant for income-seeking investors and may contribute to the company's attractiveness as an investment.
For those interested in deeper analytical insights, there are additional InvestingPro Tips available, which can be accessed through the dedicated page for AG Mortgage Investment Trust at https://www.investing.com/pro/MITT. For instance, the company has maintained dividend payments for 14 consecutive years, and its liquid assets exceed short-term obligations, both of which could be seen as indicators of financial stability and reliability for investors.
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