Terms

Series

8.00% Series B Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8%

Rate Type

Fixed

Annual Dividend

$2.00

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 27, 2017

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Issuer, Indebtedness Of Subsidiaries, Any Future Senior Preferred Equity; Pari Passu With: Series A Cumulative Redeemable Preferred Stock, Any Future Parity Preferred Equity; Senior To: Common Stock, All Other Equity Securities Without Senior Or Parity Designation

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

AG Mortgage Investment Trust, Inc. (NYSE: MITT) is offering 4,000,000 shares of its 8.00% Series B Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference per share, with an annual dividend of $2.00 per share ($0.50 per quarter). These are direct preferred shares, not depositary shares. The first call date is September 27, 2017, at $25.00 per share. This security is cumulative, meaning that any unpaid dividends accrue and must be paid in full before the issuer can resume dividends on common or junior-ranking shares — a meaningful protection for income investors in a REIT that relies heavily on leveraged mortgage assets. The Series B Preferred ranks senior to common stock and all undesignated equity, and on parity with the existing Series A Preferred Stock. It is effectively junior to all of the company's debt obligations — including approximately $2.1 billion in repurchase agreement borrowings at the time of issuance — and to the liabilities of all subsidiaries, which have no obligation to upstream funds for preferred dividends. This is a holding company structure with no structural subordination concern per se (MITT is itself the operating entity), but the scale of repo leverage relative to equity means preferred holders are meaningfully subordinated in a stress scenario. The issuer may also redeem the preferred before the call date if required to preserve REIT status — a tax-driven call that investors should note as a pre-call redemption risk distinct from a standard regulatory capital trigger. At par, the Series B Preferred yields exactly 8.00%, equivalent to $2.00 annually paid in four quarterly installments of $0.50 each on the 17th of March, June, September, and December; the record date is the last business day of the preceding calendar month. Because AG Mortgage Investment Trust is a REIT, dividends are generally treated as ordinary income and do not qualify for the 15%/20% qualified dividend income (QDI) rate available on C-corp dividends, nor does the dividends-received deduction apply for corporate holders. The dividend stopper provision prevents any cash distributions on common or parity/junior preferred stock until all accumulated Series B dividends are current, providing a meaningful — though not absolute — enforcement mechanism for income continuity.

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 all accumulated dividends on the Series B Preferred Stock, it may not pay dividends on or repurchase its common stock or any parity/junior preferred stock (except dividends paid in junior shares).

Other Preferreds from AG Mortgage Investment Trust Inc

Div Score Breakdown

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