MFA Financial, Inc. Prices Public Offering of Series B Cumulative Redeemable Preferred Stock

NEW YORK, April 9, 2013 /PRNewswire/ -- MFA Financial, Inc. (NYSE:  MFA) announced that yesterday it priced a public offering of 7 million shares of its 7.50% Series B Cumulative Redeemable Preferred Stock (the "Series B Preferred Stock"), liquidation preference $25.00 per share, for gross proceeds of approximately $175 million. The offering is subject to customary closing conditions and is expected to close on or about April 15, 2013.

In connection with the offering, MFA has granted the underwriters an option for 30 days to purchase up to an additional 1.05 million shares of the Series B Preferred Stock to cover overallotments, if any.

MFA expects to use the net proceeds of the offering for general corporate purposes, including, without limitation, the redemption of all or a portion of its outstanding 8.50% Series A Cumulative Redeemable Preferred Stock, and to use any remaining net proceeds to acquire additional mortgage-backed securities, consistent with its investment policy, and for working capital, which may include, among other things, the repayment of its repurchase agreements.   

Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering.  RBC Capital Markets, LLC is acting as lead manager for the offering and Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JMP Securities LLC and Sterne, Agee & Leach, Inc. are acting as co-managers for the offering. 

MFA has filed a shelf registration statement and prospectus with the Securities and Exchange Commission (SEC), and will file a prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus supplement and the accompanying prospectus and other documents MFA has filed with the SEC for more complete information about MFA and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at http://www.sec.gov. Alternatively, MFA, the underwriters or any dealer participating in the offering will arrange to send you the prospectus supplement and accompanying prospectus if you request them by contacting:

Morgan Stanley & Co. LLC
180 Varick Street
New York, NY 10014
Attention: Prospectus Department
or by calling 1-866-718-1649
or by e-mail: prospectus@morganstanley.com

UBS Securities LLC
299 Park Avenue
New York, New York 10171
Attention: Prospectus Specialist
or by calling 1-877-827-6444 (ext. 561-3884)

Wells Fargo Securities, LLC
1525 West W.T. Harris Blvd., NC0675
Charlotte, North Carolina 28262
Attention: Capital Markets Client Support
or by calling 1-800-326-5897
or e-mail: cmclientsupport@wellsfargo.com

or

J.P. Morgan Securities LLC
383 Madison Avenue, 3rd Floor
New York, New York 10179
Attention: Syndicate Desk
or by calling 1-212-834-4533

The shares will be issued pursuant to the shelf registration statement that was previously filed with the SEC. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the shares. An offering of the shares will be made only by means of a prospectus supplement and accompanying prospectus. The prospectus supplement and the accompanying prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Cautionary Statement Regarding Forward-Looking Information

When used in this filing, statements which are not historical in nature, including those containing words such as "will," "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions.  These statements regarding the following subjects, among others, may be forward-looking:  the Company's expected financial results; the timing of the completion of the Company's review the Company's REIT taxable income calculations; the impact of such review, including on the Company's previously issued financial statements and REIT status; the timing and amount of distributions made to the Company's stockholders; and the timing of the filing of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.  These and other risks, uncertainties and factors, including those described in the annual, quarterly and current reports that MFA files with the Securities and Exchange Commission, could cause MFA's actual results to differ materially from those projected in any forward-looking statements it makes.  All forward-looking statements speak only as of the date on which they are made.  New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect MFA. Except as required by law, MFA is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: MFA Investor Relations
800-892-7547

SOURCE MFA Financial, Inc.