Flagstar Bancorp to price $380 million common, convertible preferred stock pre-open Thursday

By Rebecca Melvin

New York, Oct. 27 - Flagstar Bancorp Inc. launched offerings of common stock and convertible preferred stock that will total $380 million, and which were expected to price before the market open Thursday, a syndicate source said.

There is a 15% greenshoe on each of the registered, off-the-shelf offerings.

J.P. Morgan Securities LLC is bookrunner for the offerings.

There was no price talk immediately available, and it wasn't yet clear how much of the total capital raise would be common and how much would be convertible, the syndicate source said.

Proceeds from the offerings will be used for general corporate purposes, including potential disposition of non-performing assets or potential restructuring of the balance sheet.

The convertible preferred shares will be subject to automatic conversion into shares of Flagstar's common stock upon stockholder approval.

Flagstar has applied to list the convertible preferred stock on the NYSE under the symbol "FBC PR," according to the company's release.

Flagstar is a Troy, Mich.-based savings and loan holding company.

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