By Rebecca Melvin
New York, Oct. 28 - Flagstar Bancorp, Inc. priced $270 million of convertible preferred stock at a liquidation price of $20 per share, which will be automatically converted in 60 days, subject to a shareholder vote, a syndicate source said.
Flagstar concurrently priced 110 million shares of common stock at $1.00 per share. The new share price represented a 57% discount to Wednesday's closing share price on the New York Stock Exchange.
There is a greenshoe on the preferred shares for up to 2.025 million additional preferred shares, or $40.5 million, on top of the 13.5 million preferreds already priced. There is also a 15% greenshoe on the common stock.
J.P. Morgan Securities LLC was the bookrunner for the registered, off-the-shelf offerings.
Proceeds will be used for general corporate purposes, which may include disposition of non-performing assets or restructuring of the balance sheet.
Flagstar has applied to list the convertible preferred stock on the NYSE under the symbol "FBC PR."
Flagstar is a Troy, Mich.-based savings and loan holding company.
| Issuer: | Flagstar Bancorp, Inc.
|
| Issue: | Mandatory convertible preferred stock
|
| Amount: | $270 million
|
| Greenshoe: | $40.5 million
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC
|
| Price: | Par, $20.00
|
| Conversion ratio: | 20
|
| Conversion price: | $1.00
|
| Pricing date: | Oct. 28
|
| Settlement date: | Nov. 2
|
| Distribution: | Registered, off-the-shelf
|
| Common stock symbol: | NYSE: FBC
|
| Preferred stock symbol: | NYSE: FBC PR
|
| Market capitalization: | $355.8 million
|
| Concurrent offering: | $110 million of common stock at $1.00 per share
|
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