I'm betting on 21.30. If you are interested in buying, put in a day order at 21.30 and I bet it is filled. Also, with a 38% increase in shares outstanding a dividend decrease is likely because of the underwriting expense and the fact that the company can probably not put the money to work with an 18% return fast enough. 12% with longer term higher possibilities wouldn't be so bad.
You might have missed the annnouncement that the Treasury made that they will be selling $10 billion of Fannie and Freddie MBS per month. That will supply all of the mREITs of plenty of MBS to buy. I think that's one of the prime reasons that we are seeing so many secondaries in the last week -- HTS, AGNC and IVR. The downside is that they may increase the frequency of their offerings to two or three per quarter in order to get the capital to buy. To get the 18% return needed to support the dividend, it obviously depends on the spread and the amount of leverage they use. From the year-end report, it looked like their spread was 3.21 and they were using 5.8 times leverage at the quarter end which gets you to 18.618%. Will be interested to see the 1st quarter metrics.
Invesco Mortgage Capital Inc. (the "Company") (NYSE:IVR - News) today announced that it has priced a public offering of 19,000,000 shares of its common stock. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 2,850,000 shares of the Company's common stock. The underwriters are offering the shares in one or more transactions in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices. The offering is expected to close on March 25, 2011.
So the pricing is either the market price OR a negotiated prices. Offer closes on the 25th of March.