Dynex buys Deutsche Bank share of joint venture

AP News
Posted: Nov 23, 2009 5:19 PM

Dynex Capital Inc., a mortgage real estate investment trust, said Monday its subsidiary, Issued Holdings Capital Corp., has bought Deutsche Bank's shares of a joint venture for $9.5 million in cash, giving Dynex 99.75 percent ownership.

The joint venture holds subordinated commercial mortgage backed securities with a par value of $38.7 million and redemption rights for about $182.5 million in callable securities. They are collateralized principally by seasoned multifamily housing loans originated by the company from 1996 to 1998.

Dynex, based in Green Allen, Va., said it expects to record a noncash charge of about $3 million during the fourth quarter.

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CEO Thomas B. Akin said the purchase simplifies its balance sheet.

Dynex shares rose 2 cents to $7.99 on Monday.