By Devika Patel
Knoxville, Tenn., Feb. 2 - Flagstar Bancorp, Inc. amended the terms of a private placement of convertible preferred shares, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal priced for $250 million on Dec. 17, but on Jan. 30, the company agreed to sell another $50 million in preferreds and $50 million in 10% trust preferred securities.
The securities will be sold to MP Thrift Investments LP, an entity formed by MP (Thrift) Global Partners III LLC, an affiliate of MatlinPatterson Global Advisers LLC. The company sold 250,000 preferreds initially, but will now add additional preferreds to the deal.
The preferreds may be converted into 312.5 million common shares at $0.80.
The trust preferred securities may be convertible into common stock on April 1, 2010 at a conversion price equal to the volume-weighted average price of the common stock from Feb. 1, 2009 through April 1, 2010.
If MatlinPatterson opts not to convert the trust preferred securities at that time, they will remain outstanding perpetually unless redeemed. Flagstar may redeem the securities at any time after Jan. 30, 2011.
Flagstar is a Troy, Mich.-based savings and loan holding company.
| Issuer: | Flagstar Bancorp, Inc.
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| Issue: | Convertible preferred shares, trust preferred securities
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| Amount: | $350 million
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| Warrants: | No
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| Investor: | MP Thrift Investments LP
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| Pricing date: | Dec. 17
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| Upsized: | Jan. 30
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| Stock symbol: | NYSE: FBC
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| Stock price: | $0.60 at close Dec. 17
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| Market capitalization: | $50.2 million
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|
|
| Preferreds
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| Shares: | 300,000
|
| Conversion price: | $0.80
|
|
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| Trust preferred securities
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| Dvidends: | 10%
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