Dynex Capital Inc. priced a public offering of 4 million shares of its series C fixed- to floating-rate cumulative redeemable preferred stock with a liquidation preference of $25.00 per share, for gross proceeds of $100 million before underwriting discounts and commissions and offering expenses.
The company granted the underwriters a 30-day option to purchase up to an additional 600,000 shares.
The offering is expected to close Feb. 21. Dynex Capital intends to apply to list the preferred stock on the NYSE.
J.P. Morgan Securities LLC, RBC Capital Markets LLC and Keefe Bruyette & Woods Inc. are the joint book-running managers for the offering. Ladenburg Thalmann & Co. Inc. and JonesTrading Institutional Services LLC are serving as co-managers.
Dynex Capital plans to use the net proceeds from the offering to redeem all of its outstanding series A cumulative redeemable preferred shares and for general corporate purposes.
The company will redeem on March 14 all 2.3 million of its outstanding series A preferred shares, representing an aggregate liquidation value of $57.5 million. The shares will be redeemed at the redemption price of $25.00 per share, plus 34.826 cents in accumulated and unpaid dividends.
Dividends will cease to accrue on the series A preferred shares as of the redemption date.