Terms

Series

6.125% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.125%

Rate Type

Fixed To Floating

Annual Dividend

$1.53

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

April 15, 2025

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of Agnc Investment Corp., All Indebtedness And Liabilities Of Subsidiaries, Any Future Preferred Stock Ranked Senior By Designation; Pari Passu With: Series C Preferred Stock (7.000% Fixed-To-Floating), Series D Preferred Stock (6.875% Fixed-To-Floating), Series E Preferred Stock (6.50% Fixed-To-Floating); Senior To: Common Stock, All Other Equity Securities Without Explicit Parity Or Senior Designation

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Depositary Share Fraction

0.001

Shares Offered

20,000,000

Prospectus Summary

AGNC Investment Corp. is offering 20,000,000 depositary shares (Nasdaq: AGNCP), each representing a 1/1,000th fractional interest in a share of its 6.125% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, with a liquidation preference of $25.00 per depositary share. Dividends are paid quarterly on January 15, April 15, July 15, and October 15 at a fixed 6.125% annual rate (equivalent to $1.53125 per depositary share per year) through April 14, 2025, then switching to three-month LIBOR plus 469.7 basis points. The Series F is non-redeemable before April 15, 2025 (the first call date, at $25.00), is perpetual with no maturity, and is cumulative — meaning unpaid dividends accrue and must be satisfied before any common dividend can be paid. Series F preferred stock ranks senior to AGNC's common stock and pari passu with its outstanding Series C (7.00%), Series D (6.875%), and Series E (6.50%) preferred stocks. It is effectively junior to all of AGNC's existing and future indebtedness — approximately $99.5 billion at September 30, 2019, primarily repurchase agreements — and to all liabilities of AGNC's subsidiaries, which have no legal obligation to upstream funds. There is no regulatory Tier 1 capital call provision; however, AGNC may redeem the Series F early to preserve its REIT tax status, or within 120 days of a qualifying Change of Control event (acquisition of >50% voting power followed by delisting of common stock), also at $25.00 per depositary share plus accrued dividends. At the $25.00 offering price, the fixed-period yield is exactly 6.125% annually ($0.383 per quarter per depositary share). Because AGNC is a REIT, dividends are generally treated as ordinary income and do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available to individual investors, nor for the dividends-received deduction (DRD) available to corporate holders. Dividends accumulate from the issuance date (February 11, 2020), with the first payment of $0.27222 per depositary share due April 15, 2020 (record date: April 1, 2020). The dividend stopper mechanic is asymmetric: if six or more quarterly dividends are in arrears (consecutive or not), holders gain the right to elect two additional board directors, but common and junior equity dividends are blocked until all arrearages are cured.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Dividends on junior securities (common stock) cannot be paid if Series F preferred dividends are in arrears; additionally, certain debt covenants may restrict payment of Series F dividends, and Delaware law requires adequate surplus for any cash dividend payment.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 55 (Average)