MFA Raising Funds For ARM Investments

MFA Mortgage Investments has priced a public offering of 25 million shares of common stock at $9.25 per share, for estimated gross proceeds of $231.3 million.

MFA also granted the underwriters a 30-day option to purchase up to an additional 3.75 million shares of common stock to cover any overallotments.

The estimated net proceeds to MFA after the payment of underwriting discounts and commissions are expected to be $220 million. The company said it will use the net proceeds to acquire additional MBS, on a leveraged basis, and for working capital, which may include the repayment of its repurchase agreements.

The transaction was scheduled to close in late January.

UBS Investment Bank, Bear Stearns, Deutsche Bank Securities and Morgan Stanley are acting as joint book-running managers. Cantor Fitzgerald, Friedman Billings Ramsey, JMP Securities and RBC Capital Markets are acting as co-managers.

MFA is a real estate investment trust that invests in a portfolio of hybrid and adjustable-rate mortgage-backed securities. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/

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