Invesco Mortage Capital (IVR) notified its financing counterparties that it was not in position to fund margin calls it received on March 23, delays dividends

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.

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