Friday, March 1, 2013

American Capital Agency Prices Stock Issue

American Capital Agency (NASDAQ: AGNC  ) has unveiled the pricing of its latest stock flotation. The company, which is to issue 50 million shares of common stock in a public offering, said it anticipated $1.58 billion in proceeds before expenses from the issue. That would equate to a price of roughly $31.60 per share.

Additionally, the firm said that it had granted the underwriters of the issue a 30-day option to buy up to an additional 7.5 million shares. This offering is expected to close on March 5.

Those underwriters include Bank of America's Merrill Lynch unit, Credit Suisse (NYSE: CS  ) , Goldman Sachs, JPMorgan Chase affiliate J.P. Morgan Securities, and Morgan Stanley (NYSE: MS  ) .

American Capital Agency said it would use the proceeds of the issue "to acquire additional agency securities as market conditions warrant and for general corporate purposes."

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