New York, July 25 - Dynex Capital Inc. priced an upsized $50 million of series A cumulative redeemable perpetual preferred stock after the close Wednesday, according to a company news release.
The preferreds priced in line with talk for a dividend in the 8.5% area.
When Dynex announced the deal earlier in the day it said it would offer at least $35 million of the preferreds.
JPMorgan Securities LLC, Barclays Capital Inc. and Jefferies & Co. are the joint bookrunners. Sterne, Agee & Leach, Inc., Ladenburg Thalmann & Co. Inc., and MLV & Co. LLC are co-managers.
The preferreds have a liquidation preference of $25.00 each. Dynex sold 2 million preferred shares and there is a greenshoe for an additional 300,000 shares.
Dividends are payable on the 15th day of January, July, April and October, beginning Oct. 15.
The preferreds can be redeemed on or after July 31, 2017 or in the event of a change of control.
Holders will have no voting rights, unless the company fails to pay dividends for six or more quarters, consecutive or not. Voting rights can also be turned on in other specific events.
Dynex will apply to list the new securities on the New York Stock Exchange under the ticker symbol DXPA.
Dynex is a Glen Allen, Va.-based internally-managed mortgage real estate investment trust.
| Issuer: | Dynex Capital Inc.
|
| Issue: | Series A cumulative redeemable perpetual preferred stock
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| Amount: | $50 million (2 million shares)
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| Greenshoe: | $7.5 million (300,000 shares)
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| Maturity: | Perpetual
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| Dividend: | 8.5%, payable quarterly
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| Price: | Par of $25.00
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| Call: | July 31, 2017 onwards
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| Bookrunners: | JPMorgan Securities LLC, Barclays Capital Inc. and Jefferies & Co.
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| Co-managers: | Sterne, Agee & Leach, Inc., Ladenburg Thalmann & Co. Inc., and MLV & Co. LLC
|
| Pricing date: | July 25
|
| Settlement date: | Aug. 1
|
| Distribution: | Off shelf
|
| Price talk: | 8.5% area
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