Invesco Raises Nearly $149m to Buy RMBS, CMBS
Real estate investment trust (REIT) Invesco Mortgage Capital (IVR) recently priced its public offering of 7m shares of common stock at $21.25 per share. The offering, announced last week, resulted in gross proceeds of $148.75m. Invesco said Tuesday it will use net proceeds to buy residential and commercial mortgage-backed securities (RMBS and CMBS) and leveraged mortgage loans. The REIT also plans to use proceeds to invest in a public-private investment fund managed by Invesco Advisers. Underwriters on the offering have another 30 days to purchase up to an additional 1.05m shares to cover any over-allotments. The offer is expected to close around January 15. Credit Suisse and Morgan Stanley acted as joint bookrunners on the offering. The Invesco REIT went public in June, and the initial public offering of 8.5m shares of at $20 per share in the end raised $201m. It was the first blind IPO in the REIT space for 13 months. As HousingWire previously reported, despite the lower pricing of Invesco's IPO, the pricing of a second offering just six months later is indicative of a growing investor appetite. Write to Diana Golobay. The author holds no relevant investment positions.