AG Mortgage prices $30 million senior notes offering

NEW YORK – AG Mortgage (NYSE:) Investment Trust, Inc. (NYSE: MITT), a real estate investment trust, has announced the pricing of a $30 million public offering of senior notes due in 2029, with an option for underwriters to purchase an additional $4.5 million to cover over-allotments. The offering is anticipated to close on January 26, 2024, subject to customary closing conditions.

The company aims to list these 9.5% senior notes on the New York Stock Exchange under the ticker symbol “MITN,” pending approval. Trading is expected to commence within 30 days post-issuance. Egan-Jones Ratings Company has assigned an investment grade rating of BBB- to the notes.

Proceeds from the sale are earmarked for general corporate purposes which include, but are not limited to, acquiring Residential Investments and Agency RMBS within the firm’s investment guidelines and maintaining its REIT qualification. The funds may also be used for working capital and repaying existing debts, such as a portion of the 6.75% Convertible Senior Notes due later in 2024.

These senior unsecured obligations will pay quarterly interest commencing May 15, 2024, and mature on February 15, 2029. The company reserves the right to redeem the notes, in whole or in part, at any time on or after February 15, 2026.

Joint book-running managers for the offering include Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co. The offering will be conducted under the company’s effective shelf registration statement with the Securities and Exchange Commission.

InvestingPro Insights

As AG Mortgage Investment Trust, Inc. (NYSE: MITT) prepares for its public offering of senior notes, investors may be interested in recent performance metrics and expert analyses. According to InvestingPro data, MITT has a market capitalization of $186.62 million and is trading at a P/E ratio of 11.24, suggesting a potentially undervalued stock when considering its near-term earnings growth. The company’s revenue growth has been impressive, with a staggering 1934.36% increase over the last twelve months as of Q3 2023.

InvestingPro Tips highlight that management’s aggressive share buyback strategy and the expectation of net income growth this year could signal confidence in the company’s prospects. Moreover, the fact that analysts have revised their earnings upwards for the upcoming period and that the stock has had a strong return over the last three months, with a 28.66% price total return, may interest potential investors. It’s noteworthy that MITT has maintained dividend payments for 13 consecutive years, currently offering a dividend yield of 3.25%.

For those looking to delve deeper into MITT’s financials and forecasts, InvestingPro offers additional tips and analytics. Subscribers can access a wealth of information, including the fact that MITT’s liquid assets exceed short term obligations and that the company is expected to be profitable this year. With the InvestingPro subscription now on a special New Year sale, investors can get up to 50% off. Plus, use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. For a comprehensive understanding of MITT’s investment potential, consider the 11 additional tips listed on InvestingPro.

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