Dynex Capital Finalizes $120M Series D Preferred Offering at 9.375%
DX is trading near its 52-week low of $11.705 (0.8% above the low).
Summary
Dynex Capital priced a $120 million offering of 9.375% Series D preferred stock, finalizing terms announced yesterday. Net proceeds of ~$115.9 million will fund Agency MBS purchases and general corporate purposes.
Key Events · Financing and Capital Events · DX
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Series D Preferred Offering Priced
4.8 million shares of 9.375% Series D preferred stock priced at $25.00 per share, raising $120 million gross and approximately $115.9 million net of underwriting discounts and expenses.
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High Coupon Reflects Cost of Capital
The 9.375% fixed dividend rate is approximately 300 basis points above the company's existing 6.900% Series C preferred, reflecting elevated financing costs for the mortgage REIT trading near its 52-week low.
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Underwriting Syndicate and Terms
Eight joint book-runners led by Morgan Stanley, J.P. Morgan, RBC, UBS, and Wells Fargo; underwriting discount of $0.7875 per share; 720,000-share over-allotment option; expected issuance September 29, 2026.
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Use of Proceeds
Net proceeds will finance acquisition of Agency and other investment securities and general corporate purposes, including repayment of maturing obligations and working capital.
Analysis · DX · Real Estate & Construction
Dynex Capital is issuing 4.8 million shares of 9.375% Series D preferred stock at $25.00 per share, raising approximately $115.9 million in net proceeds. The 9.375% coupon is notably high — roughly 300 basis points above the company's existing Series C preferred — reflecting the cost of capital for a mortgage REIT trading near its 52-week low. Proceeds will fund Agency MBS acquisitions and general corporate purposes, extending the company's aggressive portfolio expansion strategy that grew assets to $25.1 billion in Q2 2026. The preferred issuance ranks senior to common equity and adds a fixed dividend obligation of approximately $11.25 million annually, which the company must service before paying common dividends.
How filings like this one have moved
In the 30 days to Oct 4, 2026, 29.1% of the 1575 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.60%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DX was trading at $11.80 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $11.71 to $14.93. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.