Dynex Capital Raises $120M in Preferred Stock Offering for Securities Acquisition
Event summary
- Dynex Capital priced a public offering of 4.8M shares of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock, raising $120M in gross proceeds.
- The offering includes a 30-day option for underwriters to purchase an additional 720,000 shares.
- Proceeds will finance the acquisition of Agency and other investment securities and for general corporate purposes.
- The offering is expected to close on September 29, 2026, with plans to list the Series D Preferred Stock on the NYSE under the symbol “DXPRD”.
The big picture
Dynex Capital's $120M preferred stock offering underscores its strategy to bolster its investment portfolio in Agency and other securities, reflecting broader trends in the REIT sector to secure stable, long-term financing. The move comes amid a competitive landscape where access to capital and disciplined risk management are critical for maintaining attractive dividend yields. The inclusion of a 30-day option for additional shares highlights the company's flexibility in responding to market demand.
What we're watching
- Capital Deployment
- How Dynex Capital will allocate the $120M in proceeds to Agency and other investment securities, and whether this aligns with its long-term strategy.
- Market Conditions
- The impact of current economic and market conditions on the timing and success of the offering's closing and the listing of the Series D Preferred Stock.
- Investor Sentiment
- The pace at which the additional 720,000 shares are purchased by underwriters, indicating investor appetite for the offering.