Terms

Series

8.25% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8.25%

Rate Type

Fixed

Annual Dividend

$2.06

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 3, 2017

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Issuer, Indebtedness Of Existing And Future Subsidiaries, Any Equity Securities Ranking Senior To Series A Preferred Stock; Pari Passu With: Any Equity Securities Issued With Terms Providing Parity With Series A Preferred Stock As To Dividends And Liquidation; Senior To: Common Stock, All Other Equity Securities Ranking Junior To Series A Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

1,800,000

Prospectus Summary

AG Mortgage Investment Trust, Inc. (NYSE: MITT) is offering 1,800,000 shares of its 8.25% Series A Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, paying $2.0625 per share annually ($0.515625 per quarter). This is a direct preferred stock (not a depositary share). The stock is callable at $25.00 on or after August 3, 2017. Critically, this security is cumulative — if dividends are missed, they accrue and must be paid in full before any dividends can be paid on common stock, providing holders with stronger income protection than non-cumulative preferred. The Series A Preferred Stock ranks senior to MITT's common stock and all junior equity securities, but is effectively junior to all of the company's existing and future indebtedness and to indebtedness of its subsidiaries. At June 30, 2012, MITT had approximately $2.5 billion of indebtedness (primarily repurchase agreements) ranking ahead of this preferred. As a holding company structure, subsidiaries have no legal obligation to upstream funds for preferred dividends — a structural subordination risk. There is no traditional bank regulatory capital call; however, MITT may redeem the preferred prior to August 3, 2017 solely to preserve its REIT tax qualification, which is a narrower and less common trigger than a bank Tier 1 capital call. At par ($25.00), the Series A Preferred Stock yields 8.25% annually. Dividends are paid quarterly on March 17, June 17, September 17, and December 17, with the record date set as the last business day of the preceding calendar month. As a REIT, MITT's dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) tax rate for individual investors, nor the dividends-received deduction (DRD) for corporate holders — distributions are typically taxed as ordinary income. Dividend payments can be interrupted if MITT's debt agreements prohibit payment or Maryland law restricts distributions; additionally, until full cumulative dividends are current, all common stock and parity preferred distributions are blocked.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If AG Mortgage Investment Trust has not paid full cumulative dividends on the Series A Preferred Stock, it cannot pay dividends or make distributions on, or repurchase, its common stock or any junior or parity preferred stock.

Other Preferreds from AG Mortgage Investment Trust Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 47 (Average)