American Capital Agency prices 6 million shares at US$25.75 each, expects net proceeds of US$147M from offering
Cindy Allen
BETHESDA, Maryland
,
May 14, 2010
(Associated Press)
–
American Capital Agency Corp. said Friday it priced 6 million shares at $25.75 each and expects net proceeds of $147 million from the public offering.
The real estate investment trust said it granted underwriters a 30-day option to buy up to 900,000 additional shares to cover overallotments.
With the options, the new shares could equal 25 percent of the company's outstanding shares as described in a recent regulatory filing.
The shares fell $2.11, or 7.7 percent, to $25.43 in midday trading.
The stock offering is expected to close next Wednesday.
The company said it expects to use the money to buy agency securities as the market warrants and for general purposes.
American Capital invests in agency passthrough securities and collateralized mortgage obligations that are backed by government agencies or government-sponsored entities.
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