By Stephanie N. Rotondo
Phoenix, April 11 - Dynex Capital Inc. priced an upsized $50 million offering of 7.625% series B cumulative redeemable preferred stock, according to a market source on Thursday.
There is a $7.5 million over-allotment option.
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 non-rated preferreds within 120 days of a change of control.
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.
| Issuer: | Dynex Capital Inc.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $50 million, or 2 million shares
|
| Greenshoe: | $7.5 million, or 300,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Keefe, Bruyette & Woods
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Ladenburg Thalmann & Co. Inc., MLV & Co. LLC and Sterne, Agee & Leach, Inc.
|
| Dividend: | 7.625%
|
| Price: | Par of $25.00
|
| Yield: | 7.625%
|
| Talk: | Initially around 7.75%, then revised to 7.625%
|
| Call options: | On or after April 30, 2018 at par plus accrued dividends or within 120 days of a change of control
|
| Pricing date: | April 11
|
| Settlement date: | April 19
|
| Expected listing: | NYSE: DXPB
|
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