Dynex Capital looks to raise $25 million via sale of preferred stock; talk revised to 7.625%

By Stephanie N. Rotondo

Phoenix, April 11 - Dynex Capital Inc. is planning an offering of at least $25 million series B cumulative redeemable preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Thursday.

The non-rated issue was initially talked around 7.75%, a trader said. However, talk was revised to 7.625%.

J.P Morgan Securities LLC and Keefe, Bruyette & Woods are the joint bookrunners.

Dividends will be payable on the 15th day of January, April, July and October, beginning July 15. The preferreds become redeemable on or after April 30, 2018 at par plus accrued dividends.

The company can also redeem the preferreds within 120 days of a change of control.

Dynex will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "DXPB."

Proceeds will be used to acquire additional investments and for general corporate purposes, which may include the repayment of maturing debt, capital expenditures and working capital.

The company is a Glen Allen, Va.-based real estate investment trust that invests in mortgage assets.

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