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MFA Financial initiates $200 million buyback program

EditorLina Guerrero
Published 02/29/2024, 04:44 PM
Updated 02/29/2024, 04:44 PM
© Reuters.

NEW YORK - MFA Financial, Inc. (NYSE: NYSE:MFA), a leading specialty finance company, has announced the launch of a new stock repurchase program. The program, authorized by the company's Board of Directors, allows for the repurchase of up to $200 million of its common stock and is set to remain active through the end of 2025.

This new initiative replaces the previous buyback program, which expired on December 31, 2023. The former program had authorized a buyback of up to $250 million in common stock, with roughly $202.5 million of that amount remaining unused at the time of expiration.

The repurchase of shares under the new program will be subject to market conditions, share prices, liquidity, and regulatory requirements. The company has stated that there is no obligation to acquire any minimum number of shares, and purchases may be made on the open market, through private transactions, block trades, or other methods as allowed by securities laws.

This includes the potential use of Rule 10b5-1 plans, which enable trading during closed periods where insiders are not allowed to trade based on their access to proprietary information.

In conjunction with the stock repurchase program, MFA Financial has also filed a Form 8-K with the SEC to announce a new "at the market" (ATM) stock offering program. The ATM offering program will facilitate the sale of common stock shares from time to time, with an aggregate offering price cap of $300 million.

Michael Roper, MFA's Senior Vice President and Chief Financial Officer, commented on the Board's authorization, noting that these new programs will provide the company with enhanced flexibility to navigate various capital market conditions.

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MFA Financial is recognized for investing in residential mortgage loans, mortgage-backed securities, and other real estate assets. Since its initial public offering in 1998, the company has distributed over $4.7 billion in dividends to its stockholders. It also operates Lima One Capital, a subsidiary that originates and services business purpose loans for real estate investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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