MFA Financial Inc. commenced a public offering of $200 million of convertible senior notes due June 15, 2024.
The company expects to grant the underwriters a 30-day option to buy up to an additional $30 million of the notes to cover overallotments.
MFA Financial plans to add the net proceeds to its general corporate funds, which may be used for general working capital purposes, including investing in additional residential mortgage-related assets, and for working capital, which may include the repayment of amounts outstanding under its repurchase agreements.
Interest on the notes will be paid semiannually in cash on June 15 and Dec. 15 of each year. The notes will be convertible at the option of the holders into MFA Financial common shares at any time until the close of business on the business day immediately before the maturity day.
Morgan Stanley, Goldman Sachs & Co. LLC, Barclays and Wells Fargo Securities will serve as the offering's joint book-running managers.