AG Mortgage Investment Trust and Western Asset Mortgage announce merger (NYSE:WMC)

AG Mortgage Investment (MITT) will acquire Western Asset Mortgage Capital (NYSE:WMC) in a fixed exchange ratio stock/cash transaction.

The combined company is expected to establish a large residential mortgage REIT with increased scale and operational efficiencies, drive earnings accretion and long-term growth. It is expected to have a reduced G&A expense ratio and an optimized capital structure, with MITT’s preferred equity reduced to 42% (49% prior).