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Dynex Capital, Inc. Announces Public Offering of Series B Cumulative Redeemable Preferred Stock

  Dynex Capital, Inc. Announces Public Offering of Series B Cumulative
  Redeemable Preferred Stock

Business Wire

GLEN ALLEN, Va. -- April 11, 2013

Dynex Capital, Inc. (NYSE: DX) (the “Company”) announced today that it intends
to make a public offering of shares of an original issuance of Series B
Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share
(the “Series B Preferred Stock”). The Company intends to grant the
underwriters a 30-day option to purchase additional shares of the Series B
Preferred Stock to cover any overallotments. The Company also intends to apply
to list the Series B Preferred Stock on the New York Stock Exchange.

The Company intends to use the net proceeds from this offering to acquire
additional investments, consistent with its investment strategy, and for
general corporate purposes, which may include, among other things, repayment
of maturing obligations, capital expenditures and working capital.

J.P. Morgan Securities LLC and Keefe, Bruyette & Woods, Inc. are acting as the
joint book running managers for the offering.

The offering is being made pursuant to the Company’s existing shelf
registration statement that has been declared effective by the SEC. The
offering of these securities may be made only by means of a prospectus and a
related prospectus supplement that should be read prior to investing, a copy
of which may be obtained by visiting EDGAR on the SEC website at
http://www.sec.gov when available or contacting:

                                            
J.P. Morgan Securities LLC                      Keefe, Bruyette & Woods, Inc.
383 Madison Avenue                              787 Seventh Avenue, 4^th Floor
New York, New York 10179                        New York, New York 10019
Attn: Investment Grade Syndicate Desk –         Attn: Capital Markets
3rd floor
Telephone: 1-212-834-4533                       Telephone: 1-800-966-1559

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such jurisdiction.

Dynex Capital, Inc. is an internally managedreal estate investment trust, or
REIT, which invests in mortgage assets on a leveraged basis.The
Companyinvests in Agency and non-Agency RMBS and CMBS. The Companyalso has
investments in securitized single-family residential and commercial mortgage
loansoriginated by the Companyfrom 1992 to 1998.

Note: This release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. The words “believe,”
“expect,” “forecast,” “anticipate,” “estimate,” “project,” “plan,” and similar
expressions identify forward-looking statements that are inherently subject to
risks and uncertainties, some of which cannot be predicted or quantified.
Forward-looking statements in this release include, without limitation,
statements regarding intentions to offer shares of preferred stock, the
intention to list the preferred stock on the New York Stock Exchange, the
Company’s intended use of proceeds from the offering and the Company’s future
investment strategies. The Company’s actual results and timing of certain
events could differ materially from those projected in or contemplated by the
forward-looking statements as a result of unforeseen external factors. These
factors may include, but are not limited to, the rejection of the listing
application for the preferred stock on the New York Stock Exchange, changes in
general economic and market conditions, including the ongoing volatility in
the credit markets which impacts asset prices and the cost and availability of
financing, defaults by borrowers, availability of suitable reinvestment
opportunities, variability in investment portfolio cash flows, fluctuations in
interest rates, fluctuations in property capitalization rates and values of
commercial real estate, defaults by third-party servicers, prepayments of
investment portfolio assets, other general competitive factors, uncertainty
around government policy, the impact of regulatory changes, including the
Emergency Economic Stabilization Act of 2008 and the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, the full impacts of which are
unknown at this time, the impact of Section 404 of the Sarbanes-Oxley Act of
2002, and another ownership change under Section 382 that further impacts the
use of the Company’s tax net operating loss carryforward. For additional
information on risk factors that could affect the Company’s forward-looking
statements, see the Company’s Annual Report on Form 10-K for the year ended
December 31, 2012, and other reports filed with and furnished to the
Securities and Exchange Commission.

Contact:

Dynex Capital, Inc.
Alison Griffin, 804-217-5897