PRESS RELEASE DATED 12/08/2005
Published on December 13, 2005
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EXHIBIT
99.1
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PRESS
RELEASE
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FOR
IMMEDIATE RELEASE
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CONTACT:
Alison Griffin
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December
8, 2005
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(804)
217-5897
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DYNEX
CAPITAL, INC.
ANNOUNCES
DETAILS OF PARTIAL REDEMPTION
OF
SERIES D PREFERRED STOCK
AND
ANNOUNCES FOURTH QUARTER PREFERRED STOCK DIVIDEND
Glen
Allen, VA - December 8, 2005- Dynex Capital, Inc. (NYSE: DX) announced today
the
terms of its redemption of 25%, or approximately 1.4 million shares, of its
outstanding Series D 9.50% Cumulative Convertible Preferred Stock (NYSE:DXPRD).
The Company also announced that it will mail today a formal notice of the
partial redemption to the Series D Preferred Stock shareholders pursuant to
the
requirements of Section 5 of the Series D Preferred Stock designation under
the
Company’s Articles of Incorporation.
The
notice states that the effective date of the redemption, which will be made
in
cash and which will be on a pro rata basis, will be January 9, 2006 (the “Call
Date”). In accordance with its Articles of Incorporation, the Company will pay
$10.00 for each share of Series D Preferred Stock redeemed, plus accrued
dividends of $0.0238 per share for the period January 1, 2006 through the Call
Date. In order to receive the cash consideration, Series D Preferred Stock
shareholders, or their broker-dealer designees, are required to present all
Series D Preferred Stock certificates to Wachovia Bank, N.A., which will then
issue a check for the shares redeemed and a new stock certificate for the
unredeemed shares. In addition, up until the Call Date, Series D Preferred
Stock
shareholders will have the right to convert shares of Series D Preferred Stock
into Common Stock on a one-to-one basis. After the Call Date, these shareholders
maintain the option to convert the shares of Series D Preferred Stock that
were
not redeemed into Common Stock.
The
Company also announced today that its Board of Directors has declared a dividend
on its Series D Preferred Stock of $0.2375 per share for the fourth quarter
of
2005. The dividend will be payable on January 31, 2006, to holders of record
of
the Series D Preferred Stock as of December 31, 2005. The partial redemption
of
the Series D Preferred Stock will not impact the payment of the dividend for
the
fourth quarter of 2005 on any shares of Series D Preferred Stock held by holders
of record on December 31, 2005.
Dynex
Capital, Inc. is a financial services company that elects to be treated as
a
real estate investment trust (REIT) for federal income tax purposes. Additional
information about Dynex Capital, Inc. is available at
www.dynexcapital.com.
Note:
This document contains “forward-looking statements” within the meaning of the
Private Securities Litigation Act of 1995. The words “believe,” “expect,”
“forecast,” “anticipate,” “estimate,” “project,” “plan,” and similar expressions
identify forward-looking statements that are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. The Company’s
actual results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements as a result
of
unforeseen external factors that may affect the Company. These factors may
include, but are not limited to, changes in general economic and market
conditions, changes in the Company’s investment portfolio cash flows, defaults
by borrowers on loans in the Company’s investment portfolio, defaults by
third-party servicers, prepayments of investment portfolio assets by borrowers,
fluctuations in interest rates competition, and regulatory changes. For
additional information, see the Company’s Annual Report on Form 10-K for the
period ended December 31, 2004 and Quarterly Report on Form 10-Q for the period
ended September 30, 2005, as filed with the Securities and Exchange
Commission.
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