MFA Financial, Inc. Prices $100 Million 8.00% Senior Notes Offering

NEW YORK, April 3, 2012 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) today announced pricing of its public offering of 8.00% Senior Notes due 2042 (the "Notes").  The offering is expected to close on April 11, 2012, subject to customary closing conditions.  The Company intends to apply to list the Notes on the New York Stock Exchange under the symbol "MFO" and, if the application is approved, expects trading in the Notes on the New York Stock Exchange to begin within 30 days after the Notes are first issued.

The total net proceeds to the Company from the offering of the Notes are expected to be approximately $96.5 million, after deducting estimated offering expenses and the underwriting discount.  The Company intends to use the net proceeds to acquire additional residential mortgage-backed securities, consistent with its investment policy, and for working capital, which may include, among other things, the repayment of outstanding repurchase agreements.

In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to $15 million aggregate principal amount of additional Notes solely to cover overallotments.

Interest on the Notes will be paid quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, beginning July 15, 2012, at a rate of 8.00% per year and the Notes will mature on April 15, 2042, unless earlier repurchased or redeemed.

Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering.  RBC Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Cantor Fitzgerald & Co. and JMP Securities LLC are acting as co-managers of the offering.

The Company has filed a registration statement (including a prospectus) and a preliminary prospectus supplement with the Securities and Exchange Commission (the "SEC") for the offering of the Notes described in this press release.  Before you invest, you should read the prospectus and preliminary prospectus supplement and other documents the Company has filed with the SEC for more complete information about the Company and the Notes.  You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the prospectus supplement (including the prospectus) may be obtained by contacting Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, telephone: 1-866-718-1649 or by emailing [email protected]; UBS Securities LLC, 299 Park Avenue, New York, NY 10171, Attention:  Prospectus Specialist, telephone: 1-877-827-6444, ext. 561 3884 or Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention:  Capital Markets Client Support, telephone: 1-800-326-5897 or by emailing [email protected].

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes described herein, nor shall there be any sale of these Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.  The offering of these Notes will be made only by means of the preliminary prospectus supplement and the related prospectus.  The Notes being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the registration statement, the prospectus contained therein or the preliminary prospectus supplement.

MFA is a real estate investment trust primarily engaged in the business of investment, on a leveraged basis, in Agency and Non-Agency residential mortgage-backed securities.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements include, but are not limited to, statements related to the proposed offering of Notes, the anticipated use of proceeds therefrom and the expected trading date of the Notes on the New York Stock Exchange.  These forward-looking statements involve known and unknown risks, uncertainties and other factors discussed in the Company's filings with the SEC.  Any forward-looking statements speak only as of the date of this press release and the Company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events.  If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to the Company's business in general, please refer to the Company's SEC filings, including (i) its preliminary prospectus supplement, dated April 2, 2012, and (ii) its Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on February 16, 2012.

SOURCE MFA Financial, Inc.