GLEN ALLEN, Va.--(BUSINESS WIRE)--
Dynex Capital, Inc. (NYSE: DX) announced today the Company’s Board of
Directors has declared a cash dividend on its common stock for the month
of June and that its Board of Directors will implement a one-for-three
reverse stock split of the Company’s common shares.
June 2019 Common Stock Dividend
The Board declared a common stock dividend, to be paid on a post
one-for-three reverse stock split basis of $0.18 per share, payable on
July 3, 2019 to holders of record on June 26, 2019.
One-for-Three Reverse Stock Split
The reverse stock split will take effect after the market close on June
20, 2019. At that time, every three issued and outstanding shares of
common stock will be converted into one share of common stock. The
Company expects that the split-adjusted shares of its common stock will
begin trading on the New York Stock Exchange at the open of the market
on June 21, 2019 under the new CUSIP number: 26817Q886. No change will
be made to the trading symbol for the Company's common stock, "DX", in
connection with the reverse stock split. The par value of the common
stock will not be affected by the reverse stock split.
The Company is implementing the reverse stock split with the objective
of making the common stock more attractive to a broader range of
investors as well as a more cost-effective investment, which it believes
will enhance the liquidity of the holders of the Company’s common stock.
The Board also recognized that our shareholders and potential
shareholders have share price minimums and after the reverse stock split
the Company’s shares are expected to trade above those minimums.
Computershare, the Company's transfer agent, is acting as the exchange
agent for the reverse stock split. Shareholders of record holding
certificates representing shares of the Company's common stock as of
5:00 p.m. E.T. on June 20, 2019 will receive from Computershare a letter
of transmittal to exchange their existing shares of common stock for new
shares of common stock.
No fractional shares will be issued in connection with the reverse stock
split. Instead, shareholders who would otherwise be entitled to receive
fractional shares of common stock will receive a cash payment for the
fractional share interest based on the closing price per share of the
common stock as reported on the New York Stock Exchange on June 20, 2019.
Shareholders who own their shares in book-entry form with a
broker-dealer do not need to take any action with respect to the reverse
stock split. Shareholders who hold stock certificates evidencing their
shares of the Company's common stock should not send in their stock
certificates until they receive a letter of transmittal from
Computershare, which will contain detailed instructions for exchanging
their existing stock certificates. The reverse stock split will not
change the terms of the Company’s common stock; shares of the Company’s
common stock will have the same voting rights and rights to dividends
and distributions, and will be identical in all other respects to the
Company’s common stock now authorized.
Based on 73,815,376 shares of common stock outstanding as of June 5,
2019, immediately following the reverse stock split and without giving
any effect to the payment of cash in lieu of fractional shares, the
Company will have approximately 24,605,125 shares of common stock
outstanding.
In connection with the reverse stock split, the number of shares of the
Company’s common stock authorized for issuance will be decreased from
200,000,000 to 90,000,000. In addition, the conversion rate for both
series of the Company’s preferred stock will be adjusted for the reverse
stock split, effective June 20, 2019, to reduce the number of shares of
common stock into which each share of preferred stock may be convertible
in accordance with the Company’s Articles of Incorporation.
For additional information on the reverse stock split, please visit the
FAQs to be posted in the “About Us” section on the Company’s website at www.dynexcapital.com.
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, CMBS, and CMBS IO.
Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding the
business of Dynex Capital, Inc. that are not historical facts are
“forward-looking statements” that involve risks and uncertainties. For a
discussion of these risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see “Risk Factors” in the Company’s Annual Report on Form
10-K and other reports filed with the Securities and Exchange Commission.
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Alison Griffin
804-217-5897
Source: Dynex Capital, Inc.