Terms

Series

7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7%

Rate Type

Fixed To Floating

Annual Dividend

$1.75

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

November 30, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Borrowings Under Credit Facilities, Collateralized Loan Obligations, Convertible Senior Unsecured Debt, Indebtedness Of Subsidiaries; Pari Passu With: 10% Cumulative Redeemable Preferred Stock (1,000 Shares, $1,000,000 Liquidation Preference), Any Other Parity Preferred Stock; Senior To: Common Stock, All Other Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Granite Point Mortgage Trust Inc. (NYSE: GPMT), an internally managed commercial real estate finance REIT, is offering shares of its 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (par value $0.01, liquidation preference $25.00 per share). The stock pays a fixed 7.00% per annum ($1.75/share annually, $0.4375/quarter) through January 14, 2027, then converts to a floating rate equal to Three-Month Term SOFR plus 583 basis points, subject to a 7.00% floor, payable quarterly on January 15, April 15, July 15, and October 15. The Series A is cumulative, meaning any missed dividends accrue and must be paid in full before any distributions can be made to common stockholders. The issuer may call the stock at $25.00 per share on or after November 30, 2026. The Series A Preferred Stock sits above common equity and ranks pari passu with Granite Point's 10% Cumulative Redeemable Preferred Stock, but is effectively subordinated to approximately $3.0 billion of senior indebtedness (as of September 30, 2021), including credit facility borrowings, CLOs, and convertible senior unsecured notes. Because Granite Point is a holding company, the preferred is also structurally subordinated to all debt and liabilities of its operating subsidiaries, which have no legal obligation to upstream funds for preferred dividends. There is no bank-regulatory Tier 1 capital call; however, the stock may be redeemed early solely to preserve the company's REIT qualification. Existing debt covenants, including the Term Loans, may restrict dividend payments on the preferred. At par, the Series A yields 7.00% annually during the fixed-rate period. Because Granite Point is a REIT, dividends are generally not eligible for the qualified dividend income (QDI) preferential tax rate or the corporate dividends-received deduction (DRD) and are instead taxable as ordinary income or REIT pass-through income. Dividends are paid quarterly, with the record date set between 10 and 90 days before each payment date. If Granite Point fails to pay dividends for six or more quarterly periods (whether or not consecutive), preferred holders gain the right to elect two directors to the board—the primary enforcement mechanism available to investors should dividend payments be interrupted by Maryland law restrictions or debt covenant limitations.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Existing and future debt covenants (including the Term Loans) may restrict or prohibit payment of dividends on the Series A Preferred Stock; Maryland law also prohibits distributions if the company cannot pay its debts in the ordinary course or if total assets would fall below total liabilities after the distribution.

Other Preferreds from Granite Point Mortgage Trust Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 35 (Weak)