MFA Financial Inc. priced a public offering of $200 million of its 6.25% convertible senior notes due June 15, 2024.
The notes will be offered at an issue price of 99.0% of the principal amount plus any accrued interest from June 3. The company granted the underwriters an option to purchase up to an additional $30 million of the notes to cover overallotments.
The offering is expected to close June 3. Interest will be paid June 15 and Dec. 15 of each year.
MFA Financial intends to use the net proceeds for general corporate purposes, including for investment in mortgage-related assets and for working capital.
The notes may be convertible at the option of the holders at any time, at an initial rate of 125.7387 shares of MFA Financial's common stock per $1,000 principal amount of the notes, equivalent to approximately $7.95 per share.
Morgan Stanley, Goldman Sachs & Co. LLC, Barclays and Wells Fargo Securities are the joint book-running managers for the offering.