MFA Financial to Sell New Fixed to Floating Preferred Issue

mREIT MFA Financial (MFA) has announced the issuance of a new fixed-to-floating rate preferred.

Yield talk is in the 6.50% to 6.25%.

The issue will be unrated and will trade on the OTC Grey market (ticker not yet announced).

MFA has a 8% baby bond outstanding (MFO) which is to be called with the proceeds. These baby bonds were at $26.00 yesterday and are at $25.38 ttoday. They have been redeemable since 2017.

The company also has a 7.50% preferred (MFA-B) which is currently redeemable and they potentially will call a portion or all of this issue. It was redeemable starting in 2018 and is trading at $25.40 after falling from the $25.95 area yesterday.

The preliminary prospectus can be read here.

mcg, If you Prefer, EarlyBird and Mickdog were on this right away.

18 thoughts on “MFA Financial to Sell New Fixed to Floating Preferred Issue”

  1. I’ve been in and out of MFO over the years had no positions going into this. (that’s mfa isn’t it?? lol) Been out for awhile. Went back and looked where the 2, A and B traded . Nothing to rewarding on upside but seemed to be very stable. Very few visits under 21. They seemed to hold 22.

    And then looked a mark cap. 3 billion or so with over 20 year record on common. Annaly agnc ivr cim are competitors . Might make an interesting position. Proceed w caution.

  2. I was worried about my mfa.b’s getting called. They were floating around that 26$ mark. I really wanted to sell since it was callable but honestly, where would I put the cash, plus, during the dec2018 drop they dropped to only 24.25 for like a few hours on Xmas eve; otherwise, they stayed relatively strong. I hope they don’t call it all as it makes up about 5% of my preferred holdings.

  3. Kind of amazing anyone is IPOing anything into this market with PFF down over 1%. Seems like it would be more prudent to wait for volatility to subside before accessing capital markets. High risk of a failed IPO under these conditions.

  4. also…last week on their earnings call…MFA…was asked about MFO and said this…(also Fidelity had the info at 9am..this site had it first!)

    Craig L. Knutson, MFA Financial, Inc. – President, CEO & Director [17]
    ——————————————————————————–
    So thanks for the question, Eric. Obviously, those markets have been active away from us so far this year. And suffice to say, we’re on top of what’s going on and we’re aware of those opportunities.

    1. This site almost always has it first–in particular on the reader initiated alert page. I normally have it an hour or so later.

  5. IYP, EB and M, where did you find this info? Frustrating, I just checked half hour ago before buying 200 MFO. Nasdaq news, MFA Financial website, Seeking Alpha, Schwab and no news showed up!

    1. John M–they may have info from their workplace which shall go unnamed. For me I find it shortly after they do so with the RSS feed off of the SEC Edgar website.

      1. Good morning Tim…would you post the webpage that contains the RSS feed? I’ve not been able to find it anywhere on SEC.gov

    2. Yep, it’s happened with everyone time by time.
      I already have the rule, if I see some kind of suspicious fall – first of all, I check the III. Here is the most fresh info, other sites usually are late.

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