ATLANTA--(BUSINESS WIRE)--
Invesco Mortgage Capital Inc. (NYSE:IVR) (the "Company") today announced
that it has substantially completed the deployment of the capital that
it raised in its initial public offering, which closed on July 1, 2009.
In addition, the company announced the composition of its initial
portfolio.
As of July 17, 2009, the Company had acquired an aggregate portfolio of
$829.4 million, comprised of $711.9 million in agency residential
mortgage-backed securities ("RMBS"), $67.8 million in non-agency RMBS
and $49.7 million in commercial mortgage-backed securities ("CMBS"). The
Company also has entered into repurchase agreements totalling $630.6
million, secured by $669.7 million in agency RMBS, and has applied for
$41.2 million in financing under the Federal Reserve's Term Asset-Backed
Securities Lending Facility ("TALF") secured by $49.7 million in CMBS.
"We are excited about our progress during the first three weeks of
operations. We believe that the portfolio we assembled demonstrates our
ability to acquire and finance our targeted assets," said Richard King,
Chief Executive Officer. "Our strategy was to place approximately half
of our equity in non-agency RMBS that provide an attractive return while
working to mitigate downside risk. In addition, we acquired agency RMBS
that we expect will provide returns similar to our non-agency RMBS when
financed with repurchase agreements, and CMBS to be financed under TALF.
We also continue to explore opportunities provided under the
Public-Private Investment Program that would be managed by Invesco
Institutional (N.A.), Inc."
The following tables set forth additional detail regarding the Company's
portfolio as of July 17, 2009:
Mortgage-Backed Securities
Premium Weighted Average
($ in thousands) Principal (Discount) Cost Average Yield(1)
Coupon
Agency RMBS:
15 year fixed-rate $ 270,730 $ 10,166 $ 280,896 4.84 % 3.74 %
30 year fixed-rate 251,735 16,981 268,716 6.45 % 4.43 %
Hybrid ARMs 155,038 7,258 162,296 4.93 % 3.15 %
Total agency RMBS 677,503 34,405 711,908
Non-agency RMBS 114,205 (46,388 ) 67,817 5.14 % 18.17 %
CMBS 52,402 (2,693 ) 49,709 4.89 % 6.04 %
Total / Average $ 844,110 $ (14,676 ) $ 829,434 5.40 % 5.17 %
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(1) Average yield incorporates future prepayment assumptions
Financing
Weighted
($ in thousands) Balance Average
Rate
Repurchase Agreements Within 30 Days $ 630,615 0.36 %
TALF Borrowings 5 Year Maturity(2) $ 41,200 3.91 %
(2) We applied for financing under the TALF program that if approved
will settle on July 24, 2009
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Swap Transactions(3)
Notional Maturity Fixed
Counterparty Amount Date Interest Rate
in Contract
($ in thousands)
The Bank of New York Mellon $ 175,000 08/05/12 2.065 %
SunTrust Bank 100,000 07/15/14 2.785 %
Total / Weighted Average $ 275,000 2.327 %
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(3) All of the interest rate swap agreements are "pay fixed/receive
floating," have a fixed rate shown in the table and are indexed off of
one-month LIBOR. The Company has designated these agreements as cash
flow hedges.
About Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. is a real estate investment trust that
focuses on financing and managing residential and commercial
mortgage-backed securities and mortgage loans. Invesco Mortgage Capital
Inc. is externally managed and advised by Invesco Institutional (N.A.),
Inc., a subsidiary of Invesco Ltd. (NYSE:IVZ), a leading independent
global investment management company. Additional information is
available at www.invescomortgagecapital.com.
Cautionary Notice Regarding Forward-Looking Statements
This release may include statements and information that constitute
"forward-looking statements" within the meaning of the U.S. securities
laws. Forward-looking statements include statements with respect to our
beliefs, plans, objectives, goals, targets, expectations, anticipations,
assumptions, estimates, intentions and future performance.
Forward-looking statements also include statements regarding: (1) our
ability to acquire and finance targeted assets, (2) our ability to
realize an attractive return from our investments and/or to mitigate our
risk from those investments and our related financing arrangements, (3)
our ability to realize returns from agency RMBS that are similar to our
non-agency RMBS when financed with repurchase agreements, and (4) our
ability to participate in the Public-Private Investment Program. In
addition, words such as "believe," "expect," "anticipate," "intend,"
"plan," "estimate," "project," "forecast," and future or conditional
verbs such as "will," "may," "could," "should," and "would" as well as
any other statement that necessarily depends on future events, are
intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve risks,
uncertainties and assumptions. There can be no assurance that actual
results will not differ materially from our expectations. We caution
investors not to rely unduly on any forward-looking statements and urge
you to carefully consider the risks identified under the captions "Risk
Factors," "Forward-Looking Statements" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
registration statement on Form S-11 (Commission File No. 333-151665), as
amended, which is available on the Securities and Exchange Commission's
website at www.sec.gov.
All written or oral forward-looking statements that we make, or that are
attributable to us, are expressly qualified by this cautionary notice.
We expressly disclaim any obligation to update the information in any
public disclosure if any forward-looking statement later turns out to be
inaccurate.
Source: Invesco Mortgage Capital Inc
Contact: Invesco Mortgage Capital Inc.
Investor Relations
Donald Ramon, 404-439-3228
or
Media Relations
Bill Hensel, 404-479-2886