Terms

Series

7.75% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.75%

Rate Type

Fixed

Annual Dividend

$1.94

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

July 26, 2017

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Issuer, Indebtedness And Liabilities Of Subsidiaries, Any Future Senior Equity Securities Approved By Two-Thirds Vote Of Preferred Holders; Pari Passu With: Any Future Parity Preferred Stock With Terms Specifically Providing For Parity Ranking; Senior To: Common Stock, All Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

5,400,000

Prospectus Summary

Invesco Mortgage Capital Inc. (NYSE: IVR), a Maryland REIT focused on agency and non-agency mortgage-backed securities, is offering 5,400,000 shares of its 7.75% Series A Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, callable at par on or after July 26, 2017. Dividends are paid quarterly on the 25th of January, April, July, and October at $1.9375 per share annually ($0.484375 per quarter). The stock is cumulative, meaning any missed dividends accrue and must be paid in full before any distribution can be made to common shareholders — providing meaningful protection against dividend omission. The Series A Preferred ranks senior to IVR's common stock and all junior equity, but is effectively subordinated to all of the issuer's existing and future indebtedness — approximately $13 billion of repurchase agreement borrowings as of March 31, 2012 — as well as to all liabilities of its operating subsidiaries. There is no bank regulatory capital call; instead, the issuer retains a REIT-qualification redemption right prior to July 26, 2017, and a special optional redemption right within 120 days of a Change of Control at $25.00 plus accrued dividends. Upon a Change of Control, if not redeemed, holders may convert into common stock at up to 2.6427 shares per preferred share (the Share Cap), limiting protection in a distressed-price scenario. At the $25.00 offering price, the annualized yield is 7.75%. Because IVR is a REIT, dividends are generally characterized as ordinary income rather than qualified dividend income, meaning they do not qualify for the 15%/20% preferential QDI rate for individuals or the dividends-received deduction for corporate holders. Dividends are paid quarterly with the record date falling on the first day of the month in which each payment date falls. The dividend stopper provision prevents any cash distributions on common or junior/parity preferred stock unless all accumulated Series A dividends have been paid or set aside, protecting preferred holders from being leapfrogged in a cash-constrained environment.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Series A cumulative dividends are not fully paid or set aside, the issuer is blocked from paying dividends or making distributions on, or repurchasing, common stock and any junior or parity preferred stock.

Other Preferreds from Invesco Mortgage Capital Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 41 (Average)