Invesco Mortgage Capital Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Invesco Mortgage Capital Inc. (NYSE: IVR) announced the pricing of its public offering of 37.5 million common shares, generating approximately $128.625 million in gross proceeds. The offering, set to close on June 1, 2021, includes a 30-day option for underwriters to purchase an additional 5.625 million shares. Proceeds will primarily fund the redemption of the 7.75% Series A Cumulative Redeemable Preferred Stock and support general corporate purposes like repayment of obligations and working capital.

Positive

• Gross proceeds of approximately $128.625 million from the offering.
• Funds aimed at redeeming 7.75% Series A Cumulative Redeemable Preferred Stock, improving capital structure.

Negative

• Potential dilution of shares if underwriters exercise their option for additional shares.

ATLANTA, May 27, 2021 /PRNewswire/ -- Invesco Mortgage Capital Inc. (the "Company") (NYSE: IVR) announced today the pricing of its public offering of 37.5 million shares of its common stock, resulting in gross proceeds of approximately $128.625 million, before deducting any underwriting compensation or estimated offering expenses. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 5.625 million shares of the Company's common stock.  The offering is expected to close on June 1, 2021.

The Company intends to use the net proceeds from this offering to pay for the previously announced redemption of the issued and outstanding shares of the Company's 7.75% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share, and to use any remaining net proceeds for general corporate purposes, which may include, among other things, repayment of maturing obligations, capital expenditures and working capital.

Credit Suisse, Morgan Stanley & Co. LLC, BofA Securities, JMP Securities LLC and JonesTrading Institutional Services LLC are acting as joint book-running managers for the offering.

The Company is conducting the offering pursuant to an effective registration statement on Form S-3ASR dated February 27, 2019 (Commission File No. 333-229917). The offering is being made pursuant to the prospectus supplement and accompanying base prospectus that has been filed with the Securities and Exchange Commission (the "SEC"). Before you invest, you should read the prospectus supplement, prospectus and other documents the Company has filed with the SEC for more complete information about the Company and this offering. These documents are available for free on EDGAR on the SEC website at www.sec.gov. Copies of the final prospectus supplement, when available, and the accompanying prospectus may also be obtained by contacting:

Credit Suisse Securities (USA) LLC
Attn: Prospectus Department
6933 Louis Stephens Drive
Morrisville, North Carolina 27560
By phone: 1-800-221-1037
By e-mail: usa.prospectus@credit-suisse.com

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Invesco Mortgage Capital Inc.

Invesco Mortgage Capital Inc. is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., a leading independent global investment management firm.

Cautionary Notice Regarding Forward-Looking Statements

This press release may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.  These forward-looking statements include information about the size of the offering described above, the Company's ability to complete such offering on desirable terms, or at all, and the use of the net proceeds therefrom, as well as any other statements other than statements of historical fact. The words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "project," "forecast" or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, are intended to identify forward-looking statements, although not all forward-looking statements may contain such words. 

The forward-looking statements are based on management's beliefs, assumptions and expectations of the Company's future performance, taking into account all information currently available. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company.  For example, the closing of the offering described above is subject to closing conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the net proceeds of the offering may not be used as indicated.  Some of the other factors are described in the Company's most recent annual report on Form 10-K and subsequent filings, including the Company's quarterly report on Form 10-Q filed on May 5, 2021, which are available on the SEC's website at www.sec.gov, under the headings "Risk Factors," "Forward-Looking Statements," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," as applicable.

Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact: Jack Bateman, 404-439-3323

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SOURCE Invesco Mortgage Capital Inc.

FAQ

What is the total number of shares offered by Invesco Mortgage Capital Inc. (IVR)?

Invesco Mortgage Capital Inc. is offering a total of 37.5 million shares.

How much gross proceeds does the public offering of IVR expect to raise?

The offering is expected to raise approximately $128.625 million in gross proceeds.

What will the proceeds from IVR's offering be used for?

The proceeds will be used to redeem its 7.75% Series A Cumulative Redeemable Preferred Stock and for general corporate purposes.

When is the offering for Invesco Mortgage Capital Inc. expected to close?

The offering is expected to close on June 1, 2021.

Will there be any additional shares available from the IVR offering?

Yes, underwriters have a 30-day option to purchase up to an additional 5.625 million shares.