Dynex Capital, Inc. Updates Market On Status of Merger With California Investment Fund.Business Editors GLEN ALLEN Glen Allen is the name of several places in the United States of America:
Dynex Capital, Inc. (NYSE NYSE See: New York Stock Exchange : DX) announced today that in a letter to California Investment Fund, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("CIF (1) (Common Intermediate Format) A standard video format used in videoconferencing. CIF formats are defined by their resolution, and standards both above and below the original resolution have been established. The original CIF is also known as Full CIF (FCIF). ") dated December 22, 2000, the Company declared CIF in breach of the terms of the merger agreement entered into between the parties on November 7, 2000. The breach relates to CIF's obligation to provide certain evidence of financing in accordance with the terms of the merger agreement. In the letter, Dynex reserved the right to terminate the merger agreement with CIF for such breach if CIF does not agree to and satisfy certain conditions relating to obtaining financing and other matters. CIF has until 5:00 PM Eastern Time on Wednesday, December 27, 2000 to agree to the terms of the letter. Separately, as previously reported, the Company's credit facility agented by Chase Bank of Texas, related to the letters of credit on its multifamily tax-exempt bonds, expired as of the end of October. The Company has been unable to secure a formal extension of such agreement, but the lenders thereunder have not taken any adverse actions at this time. The Company also announced that it will not declare a dividend to the Series A, Series B and Series C preferred shareholders for the fourth quarter of 2000. Dividends on the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. are cumulative and the Company is not permitted to pay any dividends on its common stock until the cumulative preferred dividends have been declared and paid in full. The preferred stock dividends are current through the July 31, 1999 payment date. The Company also reported that it will not pay a dividend on its common stock for the quarter. Dynex Capital, Inc. is a financial services company that elects to be treated as a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) for federal income tax purposes. Note: This document contains "forward-looking statements"(within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995) that inherently involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen external factors. As discussed in the Company's filings with the SEC, these factors may include, but are not limited to, changes in general economic conditions, disruptions in the capital markets, fluctuations in interest rates, increases in costs and other general competitive factors. |
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