QUANTUMONLINE.COM SECURITY DESCRIPTION: MFA Financial, 6.25% Convertible Senior Notes due 6/15/2024, issued in $1000 denominations, with no redeemption, and maturing 6/15/2024. Interest distributions of 6.25% per annum ($62.50 per annum or $31.25 per semi-annual) will be paid semi-annually on 6/15 & 12/15 to holders of record on the record date that will be 6/1 & 12/1 respectively (NOTE: the ex-dividend date is one business day prior to the record date).
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
The Notes will be convertible by holders into shares of the Company’s common stock at an initial conversion rate of 125.7387 shares of common stock per $1000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $7.953 per share of common stock. Following the occurrence of a make-whole fundamental change or if the issuer gives notice of redemption, in certain circumstances the issuer may, increase the conversion rate for a holder that converts its notes in connection with such make-whole fundamental change or notice of redemption.
If a fundamental change occurs, holders may require the issuer to purchase the notes, in whole or in part, for cash at a fundamental change purchase price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest (see prospectus for further information).
Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.
This security was not rated by Moody’s or S&P at the time of its IPO. The Notes are unsecured and unsubordinated obligations of the company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
