Dynex Capital prices $120M preferred stock offering to fund mortgage-asset buys
What's the deal? Dynex CapitalDealroom has a profile for this one. Try Dealroom → (NYSE: DX) has priced a public offering of 4,800,000 shares of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock, with expected gross proceeds of $120 million before underwriting discounts and expenses. Each share carries a liquidation preference of $25.00.
What's the endgame? The internally managed real estate investment trust (REIT) plans to use net proceeds to finance the acquisition of Agency and other investment securities, and for general corporate purposes. Dynex invests in high-quality mortgage assets backed by US residential and commercial real estate.
Why now? The offering is expected to close on September 29, 2026, subject to customary conditions. Underwriters hold a 30-day option to buy up to 720,000 additional shares.
Dynex intends to list the Series D Preferred Stock on the New York Stock Exchange under the symbol "DXPRD."
Eight firms are acting as joint book-running managers: Morgan Stanley, J.P. Morgan SecuritiesDealroom has a profile for this one. Try Dealroom →, RBC Capital MarketsDealroom has a profile for this one. Try Dealroom →, UBS Investment BankDealroom has a profile for this one. Try Dealroom →, Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom →, Citigroup Global MarketsDealroom has a profile for this one. Try Dealroom →, Goldman SachsDealroom has a profile for this one. Try Dealroom →, and Keefe, Bruyette & WoodsDealroom has a profile for this one. Try Dealroom →.
The signal: By tapping the preferred-stock market rather than diluting common shareholders, Dynex secures fresh capital at a fixed 9.375% rate to expand its mortgage-asset portfolio — a bet that returns on those securities will outpace its cost of capital.
Read more: business.theantlersamerican.com
Image credit: Dimitry B
