PASADENA, Calif., Jan. 28, 2014 /PRNewswire/ -- Western Asset Mortgage Capital Corporation (NYSE: WMC) announced today the cash and stock components of its previously declared fourth quarter/year-end dividend of $2.35 for each common share.
For stockholders who elected to receive the entire $2.35 per share dividend in stock, each stockholder will receive 0.1590 shares in newly issued common stock for each common share that they held as of the dividend record date, December 30, 2013. For stockholders who elected to receive the dividend in cash, which was the default election for stockholders who did not make an election, each stockholder will receive $0.9159 per share in cash and 0.0970 shares in newly issued common stock for each common share that they held as of the dividend record date, December 30, 2013. The stock conversion price used to determine the amount of shares payable was based on the average closing price of the stock for the three day period from January 21 to January 23, 2014, which was $14.78.
With respect to the payment of the stock dividend, stockholders will be credited for the additional shares representing the stock dividend on or about January 28, 2014. Whether the distribution is received in stock or cash, for federal income tax purposes, the $2.35 per share will be considered ordinary income.
As a result of the total amount of dividend being paid in stock, the Company will issue 2,548,848 additional common shares, leading to total outstanding common shares of 26,853,351 as of January 28, 2014.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a REIT that invests primarily in Agency RMBS, which are residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency (such as GNMA) or a U.S. Government-sponsored entity (such as FNMA or FHLMC). The Company also invests in residential mortgage-backed securities that are not guaranteed by a U.S. Government agency or sponsored entity and commercial mortgage-backed securities. In the future, it may opportunistically invest in other asset-backed securities. The Company is externally managed and advised by Western Asset Management Company, an investment advisor registered with the SEC and a wholly-owned subsidiary of Legg Mason, Inc.
SOURCE Western Asset Mortgage Capital Corporation