BETHESDA, Md., May 23, 2016 /PRNewswire/ -- American
Capital Mortgage Investment Corp. ("MTGE" or the "Company") (Nasdaq: MTGE) today announced that American Capital Agency Corp.
("AGNC") (Nasdaq: AGNC) has entered into a definitive transaction agreement to acquire MTGE's external manager, American Capital
MTGE Management, LLC ("MTGE Manager") from American Capital Asset Management, LLC ("ACAM"), a wholly-owned portfolio company of
American Capital, Ltd. ("ACAS"). Under the terms of the transaction agreement, AGNC will acquire American Capital Mortgage
Management, LLC ("ACMM"), which is the parent company of MTGE Manager. Following the closing of the transaction, MTGE
Manager, as an indirect subsidiary of AGNC, will continue to provide investment management services to MTGE on an external basis
under the existing fee structure. AGNC intends to retain ACMM's current employee base, including its management, agency and
non-agency investment, operations, accounting, and treasury personnel following the transaction.
"The acquisition of our manager by AGNC eliminates any uncertainty associated with the current ACAS strategic review process
and provides continuity of personnel and investment philosophy," said Gary Kain, Chief Executive
Officer and President of MTGE. "We believe this is a great outcome for our shareholders, as MTGE will maintain its access
to our experienced management and investment teams and well-established infrastructure, providing scale benefits not typically
associated with a REIT of MTGE's size. Under AGNC's management, we are confident that MTGE can further enhance the value
proposition for shareholders and continue to generate attractive risk-adjusted returns through prudent investments, disciplined
risk management and accretive capital management actions, including the continuance of our practice of share repurchases."
The Company today also announced changes to the composition of its Board of Directors. Prior to the execution of the
transaction agreement, Morris A. Davis, John R. Erickson,
Samuel A. Flax, Larry K. Harvey, Prue B.
Larocca and Alvin N. Puryear resigned as directors of MTGE. Following the
resignations, MTGE's Board is comprised of Gary Kain, Robert M.
Couch, and Randy E. Dobbs, with Messrs. Couch and Dobbs serving as independent directors.
In addition, MTGE's Board has elected Mr. Dobbs as Chair of the Board. It is anticipated that Messrs. Erickson and
Flax will remain in their capacities as Executive Vice President and Chief Financial Officer and Executive Vice President and
Secretary, respectively, of the Company through the closing date of the transaction, which is anticipated to occur in the third
quarter of 2016.
"The directors of the Company are very pleased with the outcome of this transaction," said Randy
Dobbs, Chair of the Company's Board. "Maintaining the services of a qualified management team provides continuity
for the Company and affords us the flexibility to take advantage of future opportunities across the spectrum of real estate
investments."
Separately, ACAS and Ares Capital Corporation (NASDAQ:ARCC) announced today that they have entered into a definitive merger
agreement under which Ares Capital will acquire ACAS.
For further information or questions, please contact the Investor Relations Department at (301) 968-9220 or IR@MTGE.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding the expected timing of
completion of the proposed transaction, the expected benefits of the proposed 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, the occurrence of any event or change
of circumstances that could give rise to the termination of the transaction agreement, the risk that the proposed transaction
will not be consummated in a timely manner or at all, the receipt of regulatory approval or other closing conditions for the
proposed transaction, risks related to the disruption of management time from ongoing business operations due to the proposed
transaction, the failure to realize the expected benefits from the proposed transaction, general economic conditions, market
conditions, conditions in the market for agency and non-agency securities and mortgage related investments, 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:
Investors - (301) 968-9220
Media - (301) 968-9400
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SOURCE American Capital Mortgage Investment Corp.