By Stephanie N. Rotondo
Portland, Ore., April 3 - MFA Financial Inc. priced $100 million of 8% $25-par senior notes due April 15, 2042 on Tuesday, according to a market source.
There is a $15 million over-allotment option.
Price talk was 8% to 8.125%, and the original size was expected to be at least $75 million.
Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers. RBC Capital Markets LLC, Cantor Fitzgerald & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and JMP Securities are the co-managers.
Interest is payable quarterly on the 15th of January, April, July and October.
The company has the option to redeem the notes on or after April 15, 2017. In the event of a change of control, MFA will be required to offer to repurchase the securities at 101% of par plus accrued interest.
The company will apply to list the notes on the New York Stock Exchange under the ticker symbol "MFO." Settlement is expected April 11.
Proceeds will be used to acquire mortgage-backed securities consistent with the firm's investment policy and for working capital, which may include the repayment of repurchase agreements.
MFA is a New York-based real estate investment trust engaged in the business of investing, on a leveraged basis, in residential agency and non-agency mortgage-backed securities.
| Issuer: | MFA Financial Inc.
|
| Securities: | Senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | April 15, 2042
|
| Coupon: | 8%, payable quarterly
|
| Par amount: | $25
|
| Call option: | On or after April 15, 2017
|
| Bookrunners: | Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | RBC Capital Markets LLC, Cantor Fitzgerald & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and JMP Securities
|
| Pricing date: | April 3
|
| Settlement date: | April 11
|
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