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

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

Business Wire

GLEN ALLEN, Va. -- April 19, 2013

Dynex Capital, Inc. (NYSE: DX) (the “Company”) announced the completion of its
public offering of 2,000,000 shares of an original issuance of 7.625% Series B
Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share
(the “Series B Preferred Stock”) and an additional 250,000 shares of Series B
Preferred Stock pursuant to the underwriters’ partial exercise of their
300,000 share overallotment option. The total offering of 2,250,000 shares
produced net proceeds of approximately $54.5 million, before deducting
estimated offering expenses. The Company expects to list the Series B
Preferred Stock on the New York Stock Exchange under the symbol DXPrB.

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. acted as the
joint book running managers for the offering. Credit Suisse Securities (USA)
LLC, Ladenburg Thalmann & Co. Inc., MLV & Co. LLC, and Sterne, Agee & Leach,
Inc. acted as co-managers for the offering.

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 managed real estate investment trust, or
REIT, which invests in mortgage assets on a leveraged basis. The Company
invests in Agency and non-Agency RMBS and CMBS. The Company also has
investments in securitized single-family residential and commercial mortgage
loans originated by the Company from 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 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, 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, another ownership change under Section 382 that further
impacts the use of the Company’s tax net operating loss carryforward, and the
impact of Section 404 of the Sarbanes-Oxley Act of 2002. 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
 
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