Dynex Capital Inc. said Thursday it will sell 12.5 million shares of its common stock in a public offering.
The offering possibly could raise more than $136 million, based on Thursday's closing price and if underwriters buy additional shares.
The Henrico County-based company, a real estate investment trust that invests in mortgage assets on a leveraged basis, said it plans to use the net proceeds from the sale to acquire additional investments, and for general corporate purposes.
The offering is being made through a shelf registration filed in April.
Including a 30-day option by the underwriters to purchase up to an additional 1,875,000 shares, the offering will increase the company's outstanding shares to 55.15 million.
The company said that from Sept. 30 to Jan. 25, it had issued 402,494 shares of common stock through a continuous equity placement program, raising proceeds of $3.7 million.
Credit Suisse Securities LLC, Bank of America Merrill Lynch and JMP Securities are acting as joint book-running managers for the offering.
The company also announced preliminary earnings estimates for the quarter ended Dec. 31, saying it expects net income of between $14.1 million and $14.9 million, or 35 to 37 cents per share. In third quarter that ended Sept. 30, Dynex reported a profit of $1.5 million, or 4 cents a share.
The stock offering announcement was made after the markets closed. In regular trading, Dynex shares rose 7 cents, or 0.74 percent, to $9.49 on the New York Stock Exchange.
John Reid Blackwell
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