Terms

Series

Series B Preferred Stock and Series C Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.5%

Rate Type

Fixed To Floating

Annual Dividend

$1.88

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 15, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Senior Stock Issued In Future, All Indebtedness Of Subsidiaries; Pari Passu With: Series B Preferred Stock (With Series C Preferred Stock), Series C Preferred Stock (With Series B Preferred Stock), Any Other Parity Stock Issued In Future; Senior To: Common Stock (Junior Stock), Any Future Parity Stock Ranking Junior To Series B And C

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Prospectus Summary

MFA Financial, Inc. is offering Series B Cumulative Redeemable Preferred Stock paying a fixed 7.50% annual coupon ($1.875 per share quarterly on a $25.00 liquidation preference) and Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock paying an initial floating rate of Three-Month CME Term SOFR plus 560.66 basis points, also on a $25.00 liquidation preference, payable quarterly on March 31, June 30, September 30, and December 31. Both series are cumulative, meaning unpaid dividends accrue and must be satisfied in full before any dividends can be paid on common or junior preferred stock. The Company may redeem either series at any time at $25.00 per share plus accrued dividends, with 30–60 days' notice. Both preferred series rank senior to all common stock and junior preferred stock but are effectively subordinated to approximately $9.9 billion of existing debt and all future senior indebtedness and subsidiary liabilities. The Company may issue additional senior or parity preferred stock or incur debt, which would further subordinate these securities and could impair dividend and redemption capacity. There is no debt covenant protection or leverage limitation for preferred holders. A change-of-control conversion feature allows holders to convert to common stock if the Company is acquired and no longer trades on a major exchange, but this right may be eliminated if the Company elects to redeem the shares before conversion; this conversion cap (Share Cap) is substantially dilutive given a 50% threshold on common stock price. Series B yields 7.50% fixed ($1.875 annually) at par; Series C yields SOFR + 560.66 bps, expected to be higher in current rate environment. Dividends are cumulative and will likely qualify as ordinary income for federal tax purposes; the prospectus does not explicitly confirm preferential QDI (15%/20%) treatment or corporate DRD eligibility, and as REIT preferred these may be taxed as ordinary income to individual shareholders. Record dates fall 10–35 days before payment dates. A dividend stopper—standard for preferred stock—prohibits any dividend on common or junior preferred if Series B/C dividends are in arrears; payment is triggered solely by Board authorization and declared payment, making suspension possible if the Company faces liquidity stress or covenant breach.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

No dividends may be declared or paid on common stock or parity/junior preferred stock unless full cumulative dividends on Series B/C Preferred have been paid or a sum sufficient for payment is set apart.

Other Preferreds from MFA Financial Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 42 (Average)