Dynex Capital Redeems $56.4m CMBS
Dynex Capital (DX) redeemed $56.4m of highly rated commercial mortgage-backed securities issued in 1997 and the company expects to price more CMBS redemptions. The Virginia-based real estate investment trust said it expects interest savings of $700,000 in the third quarter and $1.1m in the fourth quarter from the redemption of the triple-A and double-A plus rated debt. Dynex now seeks longer-term financing for the CMBS, including a possible resecuritization. Dynex said the securities priced with a coupon of 8.76%, and the company financed the redemption with $46.6m of a 30-day repurchase agreement with a 1.27%, resulting in a net interest spread of 7.49%. After the redemption, the company has about $49.7m in callable CMBS outstanding, most of which is rated triple-B plus and single-A minus, and plans to redeem the debt when possible. Write to Jason Philyaw.