Yesterday, Invesco Mortgage Capital Inc. (IVR) announced its plan to offer 15 million shares of its common stock. Underwriters will be permitted a 30-day option to purchase up to an added 2.25 million shares to cover over-allotments.
Credit Suisse Securities (USA) LLC, a subsidiary of Credit Suisse (CS) and Morgan Stanley & Co. LLC, a division of Morgan Stanley (MS) are acting as joint book-running managers for the offering.
Earlier in March 2011, Invesco completed the public offering of 19 million shares of common stock coupled with the issuance of an additional 2.85 million shares of common stock as the underwriters' fully exercise their option to purchase extra shares. Therefore, the total offering of 21.85 million shares was priced at around $460.2 million, excluding the probable offering expenses.
Invesco also completed pricing of public offering of 8.7 million shares of common stock and issuance of an additional 1.3 million shares of common stock pursuant to the underwriters’ full exercise of their over-allotment option in December 2010. The total offering of around 10 million shares produced net proceeds of about $214.0 million, after deducting underwriting discounts and offering expenses.
The proceeds from the offerings are expected to aid in additional acquisitions of residential and commercial mortgage-backed securities and mortgage loans, on a leveraged basis along with other general corporate purposes.
The latest capital raising initiatives will also help the company to reduce its total debt burden to a considerable extent. Further, this capital raising will help Invesco to enhance its capital ratios and therefore pursue growth and acquisition opportunities.
Invesco Mortgage Capital Inc. is a real estate investment trust, which is focused on financing and managing residential and commercial mortgage-backed securities and mortgage loans. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers Inc., a subsidiary of Invesco Ltd. (IVZ), a leading independent global investment management company.
Invesco currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
CREDIT SUISSE (CS): Free Stock Analysis Report
INVESCO MORTGAG (IVR): Free Stock Analysis Report
INVESCO LTD (IVZ): Free Stock Analysis Report
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