Monitor the trading debut of DXPRD on the NYSE within 30 days of issuance. The 9.375% coupon is a high fixed rate for a mortgage REIT preferred, reflecting current market conditions. Watch for the company's deployment of proceeds into Agency MBS and any impact on leverage ratios in upcoming quarterly filings.
Price Chart
Executive Summary
Dynex Capital is offering 4,800,000 shares of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock at $25.00 per share, raising approximately $115.9 million in net proceeds (or $133.4 million if the overallotment is exercised). The proceeds will be used to finance the acquisition of Agency and other investment securities and for general corporate purposes. This is a capital-raising event that increases the company's preferred equity base by $120 million in liquidation preference, providing additional capital to support its mortgage REIT investment strategy.
Key Facts
- Offering of 4,800,000 shares of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock at $25.00 per share
- Total gross proceeds of $120,000,000; net proceeds of approximately $115,920,000 (or $133,353,000 if overallotment exercised)
- Underwriters have a 30-day option to purchase up to an additional 720,000 shares
- Dividend rate of 9.375% per annum on the $25.00 liquidation preference ($2.34375 per share per year), payable quarterly
- First dividend of $0.69010 per share payable on January 15, 2027 (long first dividend period)
- Series D Preferred Stock ranks senior to common stock and on parity with existing Series C Preferred Stock
- Not redeemable prior to October 15, 2031, except in limited circumstances (REIT qualification, REMIC tax status, or Change of Control)
- Application to be made to list on NYSE under symbol DXPRD; trading expected to begin within 30 days of issuance
- As of June 30, 2026, total consolidated liabilities were approximately $23.2 billion
Financial Impact
Net proceeds of approximately $115.9 million from the offering, increasing total shareholders' equity from $3.175 billion to $3.291 billion on an as-adjusted basis. The $120 million aggregate liquidation preference of the new Series D Preferred Stock adds to the company's preferred equity base.
Risk Factors
- The Series D Preferred Stock has no established trading market; liquidity may be limited until NYSE listing is approved and trading commences
- The preferred stock ranks junior to all existing and future indebtedness ($23.2 billion in total liabilities as of June 30, 2026), increasing risk in a liquidation scenario
- Dividend payments are subject to board discretion and legal availability of funds; the company cannot guarantee regular distributions
- Ownership restrictions (9.8% cap) may limit conversion rights upon a Change of Control and could have anti-takeover effects
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0000826675-26-000100 |
| Exhibit: exfilingfees.htm | 0000826675-26-000100 |
| Document: 0000826675-26-000100-index-headers.html | 0000826675-26-000100 |
| Document: 0000826675-26-000100-index.html | 0000826675-26-000100 |
| Document: 0000826675-26-000100.txt | 0000826675-26-000100 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Insider Cluster | $11.05 $10.92 | ▼ −1.18% | ▼ −0.65% | $10.84 (−1.95%) |
Oct 20, 2026 6d ago | Insider Cluster | $11.05 $11.05 | · 0.00% | ▲ +1.18% | $10.84 (−1.95%) |
Oct 19, 2026 8d ago | 8-K | $10.56 $10.96 | ▼ −3.79% | ▼ −3.45% | $10.84 (−2.60%) |
Sep 25, 2026 4w ago | 8-K | $11.33 $11.39 | ▲ +0.53% | ▲ +0.71% | $10.84 (−4.37%) |
Sep 23, 2026 4w ago | 424B5 | $11.34 $11.34 | · 0.00% | ▼ −0.54% | $10.84 (−4.45%) |
Sep 22, 2026 5w ago | 424B5 | $12.10 $11.73 | ▼ −3.06% | ▼ −2.34% | $10.84 (−10.45%) |
Aug 9, 2026 11w ago | Institutional Cluster | $12.78 $12.93 | ▲ +1.17% | ▲ +1.49% | $10.84 (−15.22%) |
Jul 20, 2026 14w ago | 8-K | $13.12 $13.02 | ▼ −0.76% | ▼ −1.60% | $10.84 (−17.42%) |
Jun 11, 2026 19w ago | Institutional Cluster | $12.90 $12.93 | ▲ +0.23% | ▼ −0.31% | $10.84 (−16.01%) |
May 22, 2026 22w ago | 8-K | $26.11 $26.00 | ▼ −0.40% | ▼ −0.42% | $10.84 (−58.49%) |
US Market Status
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