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American Capital Agency Corp (AGNC)

Stock

American Capital Agency, a mortgage REIT that was formed by American Capital Strategies (ACAS) to invest in Agency securities, priced its IPO at $20 as expected.

While the company sold only 10 million shares (versus 12.5 million as originally planned), the latest statement filed with the SEC on Wednesday suggests that parent ACAS purchased 5 million shares in a concurrent private placement and may acquire an additional 2.5 million shares in the private placement, which would result in a 43% ownership stake. Citi and Merrill Lynch acted as joint book-running managers for the offering.

AGNC will be added to the Russell 3000 index and the Russell Microcap Indices on June 27, 2008.

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