BETHESDA, Md., July 1, 2016 /PRNewswire/ -- American
Capital Agency Corp. ("AGNC" or the "Company") (NASDAQ: AGNC) today
announced that it has completed the internalization of its
management function through the acquisition of American Capital
Mortgage Management, LLC ("ACMM") and its subsidiaries. AGNC
acquired ACMM from a portfolio company of American Capital, Ltd.
("American Capital") (NASDAQ: ACAS) for a purchase price of
$562 million in cash at closing, and
no termination fee was paid by AGNC under its management agreement
in connection with the internalization. American Capital MTGE
Management, LLC, a subsidiary of ACMM, will continue to provide
investment management services to American Capital Mortgage
Investment Corp. ("MTGE") (NASDAQ: MTGE) on an external basis under
the existing fee structure.
"The closing of this transaction represents an important
milestone for AGNC and its shareholders," said Gary Kain, AGNC's Chief Executive Officer,
President and Chief Investment Officer. "Since going public
in May 2008, AGNC has delivered
industry-leading performance and returns. The substantial
projected cost savings associated with AGNC's internalization are
expected to result in AGNC having one of the lowest run-rate
operating cost structures as a percentage of shareholders' equity
of any publicly-traded residential mortgage REIT, thereby enhancing
AGNC's overall value proposition for shareholders."
In connection with the closing of the transaction, the Company
also announced changes to its management team. Peter J. Federico, previously the Company's
Senior Vice President and Chief Risk Officer, will serve as the
Company's Executive Vice President and Chief Financial
Officer. Kenneth Pollack,
previously Senior Vice President and Deputy General Counsel of
American Capital, has been appointed Senior Vice President, General
Counsel, Chief Compliance Officer and Secretary of AGNC.
Messrs. Federico and Pollack will replace John R. Erickson, previously Executive Vice
President and Chief Financial Officer, and Samuel A. Flax, previously Executive Vice
President and Secretary, respectively, who resigned effective upon
the closing of the transaction as contemplated by the Company's
May 23, 2016 press
release.
For further information or questions, please contact Investor
Relations at (301) 968-9300 or IR@AGNC.com.
ABOUT AMERICAN CAPITAL AGENCY CORP.
American Capital
Agency Corp. is a real estate investment trust that invests
primarily in agency pass-through securities and collateralized
mortgage obligations for which the principal and interest payments
are guaranteed by a U.S. Government agency or a U.S.
Government-sponsored entity. Following the closing of the
transaction, the Company is no longer affiliated with American
Capital, Ltd. For further information, please refer to
www.AGNC.com.
FORWARD LOOKING STATEMENTS
This press release
contains forward-looking statements, including statements regarding
the expected benefits of the transaction and management's plans,
projections and objectives for future operations.
Forward-looking statements are based on estimates, projections,
beliefs and assumptions of management of the Company at the time of
such statements and are not guarantees of future performance or
results. Forward-looking statements involve risks and
uncertainties in predicting future results and conditions.
Actual results could differ materially from those projected in
these forward-looking statements due to a variety of important
factors, including, without limitation, changes in interest rates,
changes in the yield curve, changes in prepayment rates, the
availability and terms of financing, changes in the market value of
the Company's assets, risks related to the disruption of management
time from ongoing business operations due to the transaction, the
failure to realize the expected benefits from the transaction,
general economic conditions, market conditions, conditions in the
market for agency securities, and legislative and regulatory
changes that could adversely affect the business of the
Company. Certain important factors that could cause actual
results to differ materially from those contained in the
forward-looking statements are included in the Company's periodic
reports filed with the Securities and Exchange Commission
("SEC"). Copies are available on the SEC's website,
www.sec.gov. The Company disclaims any obligation to update
or revise any forward-looking statements based on the occurrence of
future events, the receipt or new information, or otherwise.
CONTACT:
Investor Relations - (301) 968-9300
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SOURCE American Capital Agency Corp.