Stock News in Focus: Western Asset Mortgage Capital Corporation (NYSE:WMC)

Western Asset Mortgage Capital Corporation (NYSE:WMC) spotted trading -10.11% off 52-week high price. On the other end, the stock has been noted 23.85% away from the low price over the last 52-weeks. The stock changed 0.59% to recent value of $10.23. The stock transacted 380654 shares during most recent day however it has an average volume of 414.5K shares. The company has 52.96M of outstanding shares and 52.86M shares were floated in the market.

On Aug.19, 2019, Western Asset Mortgage Capital Corporation (NYSE:WMC) disclosed that it is commencing an underwritten offering of its 6.75% Convertible Senior Notes due 2022 (the Reopened Notes).

The Reopened Notes will be a further issuance of, be fully fungible with, and rank equally in right of payment with and form a single series with the $115 million principal amount of 6.75% Convertible Senior Notes issued by the Company in October 2017 (the Existing Notes and, together with the Reopened Notes, the Notes). The Reopened Notes will have substantially identical terms as the Existing Notes and will have the same CUSIP number as the Existing Notes. The Notes will pay interest semiannually and are expected to mature on October 1, 2022, unless earlier converted, redeemed or repurchased. The Company will have the right to redeem the Notes on or after July 1, 2022. Prior to July 1, 2022, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the business day immediately preceding the  maturity date of the Notes. The Notes will be convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s sole election.

The Company intends to use the net proceeds from the offering primarily for general corporate purposes, including to opportunistically invest in credit sensitive investments consisting of Residential Whole Loans, Commercial Loans, Non-Agency CMBS and Non-Agency RMBS. The exact investment of the proceeds will depend on prevailing market and investment conditions at the time its manager Western Asset Management Company, LLC invests the net proceeds.

Its earnings per share (EPS) expected to touch remained -70.10% for this year while earning per share for the next 5-years is expected to reach at 5.00%. WMC has a gross margin of 26.00%.

The price moved ahead of 2.12% from the mean of 20 days, 2.94% from mean of 50 days SMA and performed 2.89% from mean of 200 days price. Company’s performance for the week was 1.79%, 1.59% for month and YTD performance remained 22.66%.

Leave a Reply

Your email address will not be published. Required fields are marked *