ai-8k_20200327.htm

Virginia

54-1873198

001-34374

(State or Other Jurisdiction

of Incorporation or Organization)

(I.R.S. Employer Identification No.)

(Commission File Number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	AI	NYSE
7.00% Series B Cumulative Perpetual Redeemable Preferred Stock	AI PrB	NYSE
8.250% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	AI PrC	NYSE
6.625% Senior Notes due 2023	AIW	NYSE
6.75% Senior Notes due 2025	AIC	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

On March 26, 2020, Arlington Asset Investment Corp. (the “Company”) issued a press release providing certain Company updates. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Certain statements in this press release are forward-looking as defined by the Private Securities Litigation Reform Act of 1995. These include statements regarding the Company’s estimate of book value per common share as of March 24, 2020, current leverage, and future dividend payments. Forward-looking statements can be identified by forward-looking language, including words such as "believes," "expects," "anticipates," "estimates," "plans," "continues," "intends," "should", "may," and similar expressions. Due to known and unknown risks, including the risk that the assumptions on which the forward-looking statements are based prove to be inaccurate, actual results may differ materially from expectations or projections. These risks also include the Company’s ability to accurately estimate the financial information included in this press release, ongoing uncertainly caused by the COVID-19 pandemic and those described in the Company's most recent Annual Report on Form 10-K and any other documents filed by the Company with the Securities and Exchange Commission (the "SEC") from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. Readers of this press release are cautioned to consider these risks and uncertainties and not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to matters discussed in this press release, except as may be required by applicable securities laws.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	ARLINGTON ASSET INVESTMENT CORP.
Date: March 26, 2020	By:	/s/ Richard E. Konzmann
	Name:	Richard E. Konzmann
	Title:	Executive Vice President, Chief Financial Officer and Treasurer

McLean, Va., March 26, 2020 – Arlington Asset Investment Corp. (NYSE: AI) (the "Company") today announced that the Company has determined not to declare a first quarter 2020 common stock dividend in order to preserve liquidity as a result of volatile market conditions related to the COVID-19 pandemic. In addition, the declaration and payment of future dividends on its common stock, 7.00% Series B Cumulative Perpetual Redeemable Stock (NYSE: AI PrB) and 8.250% Series C Fixed-to-Floating Cumulative Redeemable Preferred Stock (NYSE: AI PrC) will be evaluated at a future date.

•

The Company estimates that its book value per common share as of March 24, 2020 has declined in a range of approximately 32% to 36% since December 31, 2019.

•

The Company de-levered its investment portfolio and estimates that its “at risk” short term secured financing to investable capital ratio has been reduced to approximately 1.6 to 1 from 8.7 to 1 as of December 31, 2019.¹

•

The Company remains committed to preserving long-term value for its shareholders while also protecting its employees during this difficult time.

Arlington Asset Investment Corp. (NYSE: AI) currently invests primarily in mortgage-related and other assets and will elect to be taxed as a real estate investment trust for its taxable year ending December 31, 2019. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.

The Company's "at risk" short-term secured financing to investable capital is measured as the ratio of the sum of the Company's repurchase agreement financing, net payable or receivable for unsettled securities and net contractual price of TBA commitments less cash and cash equivalents compared to the Company's investable capital measured as the sum of the Company's shareholders' equity and long-term unsecured debt.

Exhibit No.		Description
99.1		Arlington Asset Investment Corp. Press Release dated March 26, 2020.