ATLANTA, March 24, 2020 /PRNewswire/ -- Invesco
Mortgage Capital Inc. (the "Company") (NYSE: IVR) announced today
that in recent weeks, due to the turmoil in the financial markets
resulting from the global pandemic of the COVID-19 virus, the
Company and its subsidiaries have received an unusually high number
of margin calls from financing counterparties. Through Friday, March 20, 2020, the Company had timely
met all margin calls received. However, on Monday afternoon,
March 23, 2020, the Company notified
its financing counterparties that it was not in a position to fund
the margin calls that it received on March
23, 2020, and that the Company did not expect to be in a
position to fund the anticipated volume of future margin calls
under its financing arrangements in the near term as a result of
market disruptions created by the COVID-19 pandemic.
The Company further announced that it is engaged in discussions
with its financing counterparties with regard to entering into
forbearance agreements pursuant to which each counterparty would
agree to forbear from exercising its rights and remedies with
respect to an event of default under the applicable financing
arrangement for an agreed-upon period. The Company cannot predict
whether its financing counterparties will enter into a forbearance
agreement, the timing of any such agreement, or the terms
thereof.
In addition, in order to preserve liquidity until it can more
accurately assess the impact that current market conditions in
fixed income markets will have on the Company's balance sheet and
overall liquidity, the Company announced that it will delay the
payment of its previously announced quarterly cash dividends on the
Company's common stock, 7.75% Series A Cumulative Redeemable
Preferred Stock, 7.75% Fixed-to-Floating Series B Cumulative
Redeemable Preferred Stock and 7.50% Fixed-to-Floating Series C
Cumulative Redeemable Preferred Stock. The quarterly cash
dividend of $0.50 per share on the
Company's common stock had been declared on March 17, 2020 and was to be paid on April 28, 2020 to all stockholders of record as
of March 30, 2020. The Series A
Preferred Stock dividend of $0.4844
per share had been declared on March 17,
2020 and was to be paid on April 27,
2020 to stockholders of record as of April 1, 2020. The quarterly dividends on
the Series B Preferred Stock and Series C Preferred Stock were
payable on March 27, 2020, to
stockholders of record as of March 5,
2020.
The Company will continue to evaluate its liquidity situation
and plans to provide updates regarding new payment dates and, if
necessary, new record dates, for the dividends once such dates have
been determined.
The Company has engaged Alston & Bird LLP as legal counsel
and FTI LLC as financial advisor in connection with its financings
and related matters.
About Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. is a real estate investment trust
that primarily focuses on investing in, 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 registered investment advisor
and an indirect, wholly-owned subsidiary of Invesco Ltd., a leading
independent global investment management firm.
Cautionary Notice Regarding Forward-Looking
Statements
This press release may include statements and information that
constitute "forward-looking statements" within the meaning of the
U.S. securities laws as defined in the Private Securities
Litigation Reform Act of 1995, as amended, and such statements are
intended to be covered by the safe harbor provided by the same.
Forward-looking statements are subject to substantial risks and
uncertainties, many of which are difficult to predict and are
generally beyond the Company's control. These forward-looking
statements include information about the Company's ability to meet
its expected margin calls and the ability to reach an agreement
with financing counterparties, information about the Company's
upcoming dividend payments and the Company's ability to pay any
such dividends, as well as any other statements other than
statements of historical fact. The words "believe," "expect,"
"anticipate," "estimate," "plan," "continue," "intend," "should,"
"may" or similar expressions and future or conditional verbs such
as "will," "may," "could," "should," and "would," and any other
statement that necessarily depends on future events, are intended
to identify forward-looking statements.
The forward-looking statements are based on management's
beliefs, assumptions and expectations of the Company's future
performance, taking into account all information currently
available. You should not place undue reliance on these
forward-looking statements. These beliefs, assumptions and
expectations can change as a result of many possible events or
factors, not all of which are known to the Company. For
example, the ability to meet margin calls may be delayed or they
may not be met at all, and payment of the dividends discussed above
may be further delayed or may not be paid at all. Some of the other
factors are described in the Company's annual report on Form 10-K
and quarterly reports on Form 10-Q, which are available on the
SEC's website at www.sec.gov, under the headings "Risk Factors,"
"Forward-Looking Statements," "Business" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations."
Any forward-looking statement speaks only as of the date on
which it is made. New risks and uncertainties arise over time, and
it is not possible to predict those events or how they may affect
the Company. Except as required by law, the Company is not
obligated to, and does not intend to, update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Invesco Mortgage Capital Inc.
Investor Relations Contact:
Brandon Burke, 800-241-5477
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SOURCE Invesco Mortgage Capital Inc.